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Flexible Spending Accounts (FSA)
2024 FSA limits, commuter limits announced. How do they compare to 2023 limits?
The IRS released 2024 contribution limits for medical flexible spending accounts (medical FSAs), commuter benefits, and more as part of Revenue Procedure 2023-34. These limits undergo annual adjustments to account for inflation.
2024 medical FSA contribution limits (including limited and combination FSAs)
2023: $3,050 per year
2024: $3,200 per year
2024 medical FSA carryover
2023: $610 per year
2024: $640 per year
2024 commuter benefits contribution limits
2023: $300 per month
2024: $315 per month
2024 adoption assistance limits
2023: $15,950 per year
2024: $16,810 per year
The maximum amount that may be excluded from an employee’s gross income for the adoption of a special needs child through an adoption assistance program is $16,810. This amount is the same as what may be excluded from that employee’s gross income for expenses incurred by an employer for qualified adoption expenses under the same program.
The available adoption credit begins to phase out for taxpayers with modified adjusted gross income in excess of $252,150 and is completely phased out for taxpayers with modified adjusted gross income of $292,150 or more.
2023 qualified small employer health reimbursement arrangement (QSEHRA) limits
2023: $5,850 per year (Self-only), $11,800 per year (Family)
2024: $6,150 per year (Self-only), $12,450 per year (Family)
Previously announced
2024 health savings account (HSA) limits
2023: $3,850 (Self-only), $7,750 (Family)
2024: $4,150 (Self-only), $8,300 (Family)
2024 HDHP amounts/limits
HDHP (self-only coverage)
2023: $1,500 (Minimum deductible), $7,500 (Maximum out-of-pocket limit)
2024: $1,600 (Minimum deductible), $8,050 (Maximum out-of-pocket limit)
HDHP (family coverage)
2023: $3,000 (Minimum deductible), $15,000 (Maximum out-of-pocket limit)
2024: $3,200 (Minimum deductible), $16,100 (Maximum out-of-pocket limit)
To recap:
- The 2024 medical FSA contribution limit will be $3,200 per year, which is a $150 increase from 2023.
- Employers can allow employees to carry over $640 from their medical FSA for taxable years beginning in 2024, which is a $30 increase from 2023.
- The monthly commuter benefits limit in 2024 for mass transit and parking is $315 per month.
- Employer contribution limits for QSEHRAs are $6,150 for self-only and $12,450 for families.
- 2024 HSA contribution limits were previously announced by the IRS. The HSA limit is $4,150 for an individual and $8,300 for family.
Are you interested in learning more about medical FSAs? Rida Wong from FSA Store discussed eight things you should know about medical FSAs on a recent episode of our Benefits Buzz podcast.
The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers.
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