Benefits Buzz

2024 Health FSA and other Contribution Limits

Posted on November 13th, 2023

The Internal Revenue Service (IRS) published Revenue Procedure 2023-34 on November 9, 2023. The Revenue Procedure includes the inflation-adjusted 2024 contribution limits for certain employee benefit programs. Below is a summary of some of those contribution limit adjustments.

Health Flexible Spending Accounts (Health FSAs)

-The payroll deduction contribution limit for 2024 plan years is $3,200 (an increase of $150).

-Up to $640 of unused funds can be carried over from the 2024 plan year to the 2025 plan year (an increase of $30). Carryover is an optional feature that employers can have with the Health FSA they offer to their employers.

Dependent Care Flexible Spending Accounts (Dependent Care FSAs)

-The maximum contribution limit is $5,000 for the 2024 calendar year (or $2,500 if married and filing taxes separately). This contribution limit is not inflation adjusted.

Commuter Programs

-The monthly contribution limit for mass transit is $315 (an increase of $15).

-The monthly contribution limit for qualified parking is $315 (an increase of $15).

Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs) 

-The maximum annual contribution for single-only coverage for 2024 plan years is $6,150 (an increase of $300).

-The maximum annual contribution for family coverage for 2024 plan years is $12,450 (an increase of $650).

Earlier this year, the IRS issued a separate Revenue Procedure with the limits for High Deductible Health Plans (HDHPs) and Health Savings Accounts (HSAs). To see those limits, please click here.

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