2025 health FSA, other health and fringe benefit limits now set
October 24, 2024
IRS Rev. Proc. 2024-40 gives the 2025 contribution and benefit limits for health flexible spending arrangements (FSAs), qualified small-employer health reimbursement arrangements (QSEHRAs), long-term care (LTC) policies, transportation fringe benefits and adoption assistance programs. The 2025 figures reflect the increase in the average chained Consumer Price Index for All Urban Consumers (C-CPI-U) for the 12 months ending Aug. 31, 2024, after applying statutory rounding rules.
Health FSA, QSEHRA and LTC limits
This table shows the 2025 adjusted amounts for health FSAs, QSEHRAs and qualified LTC policies, along with the limits for 2024 and 2023. The health FSA carryover limits shown reflect the maximum unused funds that can carry over to the next plan year.
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Health FSA limits (IRC §125(i)) | |||
| Maximum salary reduction contribution | $3,300 | $3,200 | $3,050 |
| Maximum health FSA carryover | 660 | 640 | 610 |
| QSEHRA limit (IRC § 9831(d)) | |||
| Maximum annual benefit | |||
| Self-only coverage | 6,350 | 6,150 | 5,850 |
| Family coverage | 12,800 | 12,450 | 11,800 |
| Qualified LTC policy limits (IRC § 213(d) and 7702B(d)(4)) | |||
| Premium limits at age | |||
| 40 or younger | 480 | 470 | 480 |
| 41–50 | 900 | 880 | 890 |
| 51–60 | 1,800 | 1,760 | 1,790 |
| 61–70 | 4,810 | 4,710 | 4,770 |
| Older than 70 | 6,020 | 5,880 | 5,960 |
| Per diem limit | 420 | 410 | 420 |
The 2025 adjusted amounts for health savings accounts (HSAs), HSA-qualifying high-deductible health plans, excepted-benefit HRAs, out-of-pocket maximums in nongrandfathered group health plans and various indexed amounts for the Affordable Care Act’s employer-shared responsibility provision were announced earlier this year.
Qualified transportation fringe benefits and adoption assistance programs
This table shows the 2025 adjusted figures for qualified transportation fringe and adoption assistance benefits set by Rev. Proc. 2024-40, along with amounts for 2024 and 2023.
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Tax-free qualified transportation fringe benefits (IRC § 132 (f)) | |||
| Monthly qualified parking, transit passes or commuter highway vehicles | $325 | $315 | $300 |
| Qualified adoption assistance programs (IRC § 137) | |||
| Exclusion for child with special needs (regardless of expenses incurred) | 17,280 | 16,810 | 15,950 |
| Aggregate dollar limit for all taxable years | 17,280 | 16,810 | 15,950 |
| Phaseout begins at modified AGI of | 259,190 | 252,150 | 239,230 |
| Phaseout completed at modified AGI of | 299,190 | 292,150 | 279,230 |
Related resources
Non-Mercer resources
- Rev. Proc. 2024-40 (IRS, Oct. 22, 2024)
- IRS releases tax inflation adjustments for tax year 2025 (IRS, Oct. 22, 2024)
Mercer Law & Policy resources
- 2025 affordability percentage for employer health coverage increases (Sept. 9, 2024)
- 2025 transportation and health FSA limits projected (July 17, 2024)
- 2025 HSA, HDHP and excepted-benefit HRA figures set (May 10, 2024)
- Summary of 2024 benefit-related cost-of-living adjustments (Feb. 8, 2024)
- 2024 quick benefit facts (Jan. 17, 2024)
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