During 2025 open enrollment season for healthcare coverage, the Internal Revenue Service (IRS) reminds employers and employees that employees who choose to participate in Flexible Spending Arrangements (FSAs) can contribute up to $3,300 through payroll deductions to use tax-free dollars to pay for qualified medical expenses not covered by other health plans. This is an increase of $100 over 2024. For FSAs that permit the carryover of unused amounts, the maximum 2024 carryover to 2025 is $660. For more information, see the IRS press release or see its Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans.