How much can you contribute to an FSA in 2024?

For 2024, there is a $150 increase to the contribution limit for these accounts. An employee who chooses to participate in an FSA can contribute up to $3,200 through payroll deductions during the 2024 plan year. Amounts contributed are not subject to federal income tax, Social Security tax or Medicare tax.

Can an employee contribute to an FSA?

Contributions to an FSA are voluntarily made by the employee or by the employer at their discretion. FSA accounts are not portable, meaning that the employer owns them and the employee cannot use funds beyond the end of the year if they leave the employer. What are FSA Qualified Medical Expenses?

What can I use my FSA for?

The funds accumulated in an FSA can be used to pay for medical expenses for yourself, your spouse and your dependents within the year. A flexible spending account (FSA) is a tax-advantaged way to save for future healthcare costs. You can use an FSA to pay copayments, deductibles, prescription drugs and health costs.