Max: $3,400
Total Tax Savings
$956
Monthly Pre-Tax
$208
Contribution
$2,500
What is an FSA?
A Flexible Spending Account (FSA) is an employer-sponsored benefit that lets you set aside pre-tax dollars for eligible healthcare expenses. Contributions reduce your taxable income, saving you federal income tax, state income tax, and FICA (Social Security and Medicare) taxes. FSAs are "use it or lose it" with some exceptions.
What happens to unused FSA funds?
Traditionally, unused FSA funds were forfeited at the end of the plan year ("use it or lose it" rule). However, employers may offer one of two options: a grace period of up to 2.5 months into the next plan year, or a carryover of up to $660 (2025 limit) to the next year. Employers can offer one option but not both.
What is the FSA carryover limit for 2025?
For 2025, the FSA carryover limit is $660, meaning you can roll over up to $660 of unused funds into the next plan year if your employer allows carryovers. The maximum annual contribution limit is $3,300. Note that not all employers offer the carryover option -- check with your HR department.
FSA vs HSA: What is the difference?
Key differences: (1) FSAs are "use it or lose it" while HSA funds roll over indefinitely, (2) FSAs require no specific health plan but HSAs require a High Deductible Health Plan, (3) FSA funds are immediately available while HSAs build over time, (4) HSAs are portable between jobs while FSAs are tied to your employer, (5) HSAs have investment growth potential while FSAs do not.
IRS-Aligned: This calculator uses 2025 FSA contribution limits per IRS Revenue Procedure 2024-40. Your actual tax savings depend on your specific tax situation. Consult your employer for plan-specific rules.
Disclaimer: This calculator provides estimates based on current IRS rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your filing status, state of residence, deductions, and individual circumstances. Always consult a qualified tax professional or CPA before making financial decisions. Read our terms
This calculator uses official rates and thresholds from:
- IRS — Flexible Spending Arrangements
- IRS Publication 969 — Health Savings Accounts and Other Tax-Favored Health Plans
- IRS Publication 15-B — Employer's Tax Guide to Fringe Benefits
Last verified: March 2026 · Tax year 2025. Results are indicative — consult a qualified accountant for personalised advice.