According to the IRS, employees and employers can contribute a combined maximum of $2,750 to an FSA in 2021. Employers can also set their own contribution limits, which may be equal to or lesser than the federal maximum. Employers are allowed to either offer a grace period to employees (extending the eligible spending cutoff to March 15 of the following calendar year) or offer to carry over a portion of the FSA funds. This carryover is limited to a maximum of $550 for 2021.