On Thursday, November 9, 2023, the IRS announced the 2024 contribution limits for reimbursement accounts. Here are the new annual limits for account holders beginning on January 1, 2024.
2024 Contribution Limits for FSAs
- For 2024, the Health Flexible Spending Account annual maximum contribution will increase by $150 to $3,200 per plan year.
- For Health FSA plans with the optional Health FSA Carry Forward provision, there is an IRS limit on the amount of unused funds that can be carry forward every year. In 2024, the maximum Health FSA Carry Forward will be $640, up from $610 in 2023. Please note: your employer may impose a different carry forward limit. Please check your plan’s Summary Plan Description (SPD) to confirm the maximum carry forward amount.
Adoption Assistance FSA
The maximum amount that may be excluded from an employee’s gross income under an Adoption Assistance FSA will increase from $15,950 to $16,810.
Commuter Plan – Parking & Transit Account
For 2024, the Parking & Transit monthly contribution limit will increase by $15 to $315 per account.
Overview of Changes for 2024
|Health Flexible Spending Account||$3,050 annual contribution||$3,200 annual contribution|
|Health FSA Carry Forward Maximum||$610||$640|
|Adoption Assistance Flexible Spending Account||$15,950 annual contribution||$16,810 annual contribution|
|Parking Plan||$300 monthly contribution||$315 monthly contribution|
|Transit Plan||$300 monthly contribution||$315 monthly contribution|
|Health Savings Account – Contribution Limit||$3,850 annual contribution for individual coverage/$7,750 for family coverage||$4,150 annual contribution for individual coverage/$8,300 for family coverage|
|Health Savings Account – Annual HDHP Minimum Deductible||$1,500 for individual coverage/$3,000 for family coverage||$1,600 for individual coverage/$3,200 for family coverage|
|Health Savings Account- Out-of-Pocket Maximums||$7,500 for individual coverage/$15,000 for family coverage||$8,050 for individual coverage/$16,100 for family coverage|
For more information, please refer to IRS Revenue Procedure 2023-34.