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2024 FSA Contribution Limits Announced

November 10, 2023

2024 FSA Contribution Limits Announced

The IRS announced the new limits on November 9, 2023.

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Highlights of changes coming in 2024:

FSA Contributions: Contributions to a healthcare flexible spending account have increased $150 to $3,200 - up from $3,050 in 2023.

FSA Carryover Amount: If the employer allows for carry-over, FSA participants can now carry over $640 - up $30 from $610 in 2023.

Transit & Parking Benefits: The monthly contribution limit on parking and transit benefits will increase to $315 - up from $300 in 2023.

Adoption Assistance Program: The maximum exclusion for qualified adoption expenses under the adoption assistance program is now 16,810 - up from $15,950 in 2023.

Taxable Years Beginning in 2024 Taxable Years Beginning in 2023
Limit on voluntary employee salary reduction contributions to a health flexible spending arrangement (Section 3.16 of Rev. Proc. 2021-45) $3,200 $3,050
Maximum carryover amount of unused FSA amounts (Section 3.16 of Rev. Proc.2021-45 $640 $610
Monthly limit on fringe benefit exclusion for transit and parking (Section 3.17 of Rev. Proc. 2021-45) $315 $300
Maximum exclusion for qualified adoption expenses furnished pursuant to an adoption assistance program (Section 3.19 of Rev. Proc. 2021-45) $16,810 $15,950
Maximum reimbursement from a qualified small employer health reimbursement arrangement (QSEHRA) (Section 3.62 of Rev. Proc. 2022-38)  $6,150
($12,450 for family coverage)
$5,850
($11,800 for family coverage)

 

The above chart does not include all the provisions under the cost-of-living adjustment. 

For a full break down of the changes made by the IRS for benefit account contributions, see the full details here. 

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