2024 FSA Limit Increase + Other Indexed Benefit Figures

Annually, the Internal Revenue Service and Social Security Administration release cost-of-living adjustments that apply to dollar limitations set forth in certain IRS Code Sections. The Consumer Price Index warranted increases in some benefits figures for 2024—for a full summary and charts of key 2024 figures that are of interest to employers and sponsors of benefit plans, please click here.

Below is a summary of the recently released 2024 limits related to health flexible spending accounts (FSAs) and commuter benefits.

Health FSAs

The annual contribution limit for health FSAs will increase to $3,200 in 2024. This is a $150 increase from the 2023 contribution limit. An increased FSA carryover for 2024 was also announced—if an employer’s plan permits the carryover of unused health FSA amounts, the maximum carryover amount rises to $640, up from $610.

Commuter (Parking and Transit)

The commuter benefits limit in 2024 for mass transit and parking will increase to $315 per month. This is an increase from the 2023 monthly limit, which was $300.

As always, please do not hesitate to reach out to our Employee Benefits team with any questions or visit our archive of past HR News and compliance updates. 

_{This update is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice.
Readers should contact legal counsel for legal advice.}