IRS Announces More 2024 Limits

Via Rev. Proc. 2023-34, the IRS released its 2024 annual contribution limits for Flexible Spending Accounts (FSAs), Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs), adoption assistance, and qualified transportation plans.

2024 FSAs

The annual contribution limit for FSAs increased to $3,200, compared to $3,050 in 2023. For plans that include the Carryover option, that limit increased to $640, up from $610 this year.

2024 QSEHRAs

The annual maximum combined total that an employer can provide per employee in payments and reimbursements under a QSEHRA plan will increase to $6,150 for self-only coverage and $12,450 for family coverage in 2024, compared to $5,850 and $11,800 in 2023.

2024 Adoption Assistance Limits

For 2024, the maximum adoption assistance limit increases to $16,810. That’s up from $15,950 in 2023. Employer assistance remains completely excludable from an employee’s gross income up to a modified adjusted gross income of $252,150. Above that income level, the tax-free provision gradually phases out.

2024 Transit Limits

The monthly limit for qualified transit expenses will rise to $315. The monthly limit for qualified parking will also rise to $315. Both were set at $300 in 2023.

2024 Excepted Benefit Health Reimbursement Arrangements

Per IRS Rev. Proc. 2023-23, the maximum amount for an excepted benefit HRA (EBHRA) is $2,100.

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