What are FSA Limits?
FSA Limits are the maximum amounts of money that an employee can contribute to a Flexible Spending Account (FSA) within a given year. These limits are set by the Internal Revenue Service (IRS) and can vary based on the type of FSA (such as health care, dependent care, or transportation). The limits are updated annually, and contributions above these amounts are not allowed. FSAs allow employees to set aside pre-tax earnings for eligible expenses, and these limits help ensure that contributions remain within the established regulatory framework.