At Balanced Bookkeeping of NC, we want to let our clients who participate in Paychex’s Flexible Spending Account (FSA) program know that the IRS recently announced an increase in the unreimbursed medical expenses limit for 2025. Starting in the new year, the limit for these accounts will rise from $3,200 to $3,300. To reflect this change, Paychex will automatically update the limit to $3,300 starting on November 25, 2024.
What Should You Do?
After November 25th, you will be able to log onto the PBA Employer Web Portal to review this change in the Adoption Agreement and retain a copy for your records. This will ensure your plan details are up to date with the new limit prior to the income tax filing process.
It is also a good idea to share this information with participants in your plan, so they understand how the change could affect their contributions and benefits for the new plan year. We recommend providing them with a letter that explains this increase and guides them on how to enroll in their plan for the upcoming year.
Note that the 2025 Open Enrollment materials previously provided by Paychex did not include this update, as the IRS announcement was made after these materials were distributed.
Contact Us to Learn More and to Get Income Tax Filing Guidance
If you would like further information about how this plan increase affects your accounts and your clients, we are always happy to help. Contact us today to speak to one of our bookkeeping professionals and to receive additional information on income tax filing in light of this change.
