IRS Adjusts Benefit Limits for 2024
Compliance News
Thursday, November 30 2023
The Internal Revenue Service (IRS) released Revenue Procedure 2023-34, which increases the health Flexible Spending Account (FSA) salary reduction contribution limit to $3,200 for plan years beginning in 2024, an increase of $150 from 2023.
Thus, for health FSAs with a carryover feature, the maximum carryover amount is $640 (20% of the $3,200 salary reduction limit) for plan years beginning in 2024. Of course, when carrying over funds from 2023 to 2024, 20% of the $3,050 salary reduction limit for 2023 is $610.
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Thus, for health FSAs with a carryover feature, the maximum carryover amount is $640 (20% of the $3,200 salary reduction limit) for plan years beginning in 2024. Of course, when carrying over funds from 2023 to 2024, 20% of the $3,050 salary reduction limit for 2023 is $610.
For More Information, Click Here