The annual contribution limit for Health Care FSAs is projected to increase. However, the IRS usually waits around until November to decide on those limits. For Annual Enrollment purposes, all FSA contribution maximums will be set at the 2024 limits:

• Health Care and Limited Purpose FSA: $3,200
• Dependent Care FSA: $5,000 

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• For Health Care FSA: You can roll over up to $640 from your Health Care FSA into the following year. 
• For Dependent Care FSA: No funds will roll over to 2025. You lose any funds remaining in your account after December 31, 2024.

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Yes. If you want to participate in a Health Care or Dependent Care FSA, the IRS says you must enroll each year. We’re not allowed to assume that you want to contribute the same amount each year. Before you decide what to contribute in 2025, make sure you understand how much carryover you expect from 2024. 

Dependent Care FSAs do not allow for carryover of any unused funds, and the Health Care FSA carryover is up to a maximum of $640. You lose any unused Health Care FSA funds above the carryover limit. So, plan carefully, or you could risk losing your account balance.

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A Limited Purpose FSA is exclusively for dental and vision expenses until you meet your plan deductible, at which point you can also use it for medical and prescription drug expenses.

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Check out these articles from Benepass to learn more about FSAs.

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