2024 FSA Contribution Limits Announced
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)
($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.