{"id":21171,"date":"2024-11-19T15:36:31","date_gmt":"2024-11-19T21:36:31","guid":{"rendered":"https:\/\/www.bbrown.com\/?post_type=insight&#038;p=11435"},"modified":"2025-06-30T17:18:18","modified_gmt":"2025-06-30T22:18:18","slug":"2025-fsa-and-transportation-limit-updates-3","status":"publish","type":"insight","link":"https:\/\/www.bbrown.com\/us\/insight\/2025-fsa-and-transportation-limit-updates-3\/","title":{"rendered":"2025 FSA and Transportation Limit Updates"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row row_style=&#8221;page-hero&#8221; full_width=&#8221;stretch_row_content&#8221;][vc_column]\n\t<div class=\"hero hero--wrap    \">\n\n\t\t<div class=\"hero--background-image hero--background-image-blur\">\n\t\t\t<div class=\"hero--overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"hero-background\" style=\"background: url(https:\/\/www.bbrown.com\/wp-content\/uploads\/2024\/11\/AdobeStock_77017151-scaled-1.jpeg) center center no-repeat; background-size: cover;\"><\/div>\n\t\t\t\t\t<\/div>\n\n\t\t<div class=\"hero--container\">\n\t\t\t<div class=\"container\">\n\t\t\t\t<div class=\"hero--inner width-100\">\n\n\t\t\t\t\t\n  <div class='content-heading  100%  '>\n    <p class='text-white subheading'>Employee Benefits<\/p>\n    <h1 class='text-white    '>\n      2025 FSA and Transportation Limit Updates\n    <\/h1>\n\t\n  <\/div>\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\n\t<\/div>\n\n\t\n[\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;2\/3&#8243;]\n  <div class='content-heading  100% content-heading--ruled '>\n    \n    <h1 class='text-brand-dark-blue    h2'>\n      2025 FSA and Transportation Limit Updates\n    <\/h1>\n\t\n  <\/div>[vc_column_text css=&#8221;&#8221;]On October 22, 2024, the IRS released <a href=\"https:\/\/www.irs.gov\/pub\/irs-drop\/rp-24-40.pdf\" target=\"_blank\" rel=\"noopener\">Revenue Procedure 2024-40<\/a>, providing a list of inflationary adjustments made to certain employee health and welfare benefits (and other various items) for the 2025 calendar year, including:<\/p>\n<ul>\n<li>2025 inflationary-adjusted health FSA employee contribution limits<\/li>\n<li>2025 inflationary-adjusted qualified transportation fringe benefit reimbursement program limits<\/li>\n<\/ul>\n<p>The new limits for these benefits are as follows:<\/p>\n<h4>1. Health FSA (for both general purpose and limited purpose health FSAs):<\/h4>\n<p>a. An employee may contribute a maximum of $3,300 to a health FSA for plan years beginning on or after January 1, 2025 (up from $3,200 in 2024).<\/p>\n<p>b. An employee may carry over a maximum amount of $660 from a plan that has a plan year beginning on or after January 1, 2025, to the following plan year (up from $640 in 2024).<\/p>\n<h4>2. Commuter Transit\/Qualified Parking Benefit Limits<\/h4>\n<p>a. For 2025, an employee may receive up to $325 per month in reimbursements for qualified transportation expenses (e.g., commuter highway vehicle, transit passes) (up from $315 in 2024).<\/p>\n<p>b. For 2025, an employee may receive up to $325 per month in reimbursements for qualified parking expenses (up from $315 in 2024).<\/p>\n<p>The maximum amount of dependent care FSA (DCAP) benefits that may be received on a tax-free basis during a calendar year has not changed and will continue to be $5,000 for most employees in 2025.<\/p>\n<p>As a reminder, these annual adjustments are permissive, meaning employers\/plan sponsors need not adopt the above inflationary adjustments within their plan. If an employer\/plan sponsor chooses to adjust their employee contribution\/reimbursement amounts, they should reflect such changes within their accompanying document(s) that describe the plan(s).<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-11452 \" src=\"https:\/\/www.bbrown.com\/wp-content\/uploads\/2024\/11\/FSA-Limit_Table-2.png\" alt=\"\" width=\"502\" height=\"360\" \/>[\/vc_column_text]\t<div class='wpb_content_element text-left btn-container'>\n\t\t\t\t\t<a class='btn btn-brand-green  '\n\t\t\t\thref='https:\/\/www.bbrown.com\/wp-content\/uploads\/2024\/11\/2025-FSA-and-Transportation-Limit-Updates-Brown-Brown_WEB.pdf' target='_blank' data-toggle=''>\n\t\t\t\t<span class=\"btn-text-color--default\">Download PDF<\/span>\n\t\t\t<\/a>\n\t\t\t<\/div>\n[\/vc_column][vc_column width=&#8221;1\/3&#8243;][vc_single_image image=&#8221;2348&#8243; alignment=&#8221;center&#8221; style=&#8221;vc_box_circle_2&#8243;][vc_separator border_width=&#8221;2&#8243; el_width=&#8221;60&#8243;][vc_column_text css=&#8221;&#8221;]<\/p>\n<h6 style=\"text-align: center;\">Regulatory and Legislative Strategy Group<\/h6>\n<p>[\/vc_column_text]\t<div class='wpb_content_element text-center btn-container'>\n\t\t\t\t\t<a class='btn btn-brand-dark-blue  '\n\t\t\t\thref='\/us\/contact\/contact-general\/' target='' data-toggle=''>\n\t\t\t\t<span class=\"btn-text-color--default\">Connect Now<\/span>\n\t\t\t<\/a>\n\t\t\t<\/div>\n[\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row row_style=&#8221;page-hero&#8221; full_width=&#8221;stretch_row_content&#8221;][vc_column][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;2\/3&#8243;][vc_column_text css=&#8221;&#8221;]On October 22, 2024, the IRS released Revenue Procedure 2024-40, providing a list of inflationary adjustments made to certain employee health and welfare benefits (and other [&hellip;]<\/p>\n","protected":false},"author":66,"featured_media":11436,"template":"","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"insight_category":[31,73],"class_list":["post-21171","insight","type-insight","status-publish","has-post-thumbnail","hentry","insight_category-employee-benefits","insight_category-regulatory-and-legislative-strategy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>2025 FSA and Transportation Limit Updates - Brown &amp; Brown<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bbrown.com\/us\/insight\/2025-fsa-and-transportation-limit-updates-3\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"2025 FSA and Transportation Limit Updates\" \/>\n<meta property=\"og:description\" content=\"[vc_row row_style=&#8221;page-hero&#8221; full_width=&#8221;stretch_row_content&#8221;][vc_column][\/vc_column][\/vc_row][vc_row][vc_column width=&#8221;2\/3&#8243;][vc_column_text css=&#8221;&#8221;]On October 22, 2024, the IRS released Revenue Procedure 2024-40, providing a list of inflationary adjustments made to certain employee health and welfare benefits (and other [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.bbrown.com\/us\/insight\/2025-fsa-and-transportation-limit-updates-3\/\" \/>\n<meta property=\"og:site_name\" content=\"Brown &amp; 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