Versatile spending accounts (FSAs) are employer-sponsored accounts that enable staff to put aside pre-tax {dollars} to pay for certified medical bills. The funds in an FSA can be utilized to pay for a wide range of bills, together with physician’s visits, pharmaceuticals, and dental care. The bounds on how a lot cash will be contributed to an FSA are set by the Inner Income Service (IRS) annually.
For 2025, the IRS has set the next limits on FSA contributions:
