2024 FSA Contribution Limits Announced
Table of Contents
The IRS announced the new limits on November 9, 2023.
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.