IRS Releases 2024 FSA Contribution Limits
Published on November 9th, 2023
Each year, the IRS updates the maximum amount that an account holder can contribute into their healthcare flexible spending account (FSA), and the amount that eligible account holders are able to carry over to the following plan year.
The IRS has just announced updated 2024 FSA contribution limits, which are seeing modest increases over 2023 amounts. Employees can now contribute $150 more this year to their FSA (including limited-purpose FSAs) – which is slightly less than the previous year’s increase of $200. Additionally, for those whose plans permit carryover of unused funds, the carryover amount is increasing from $610 to $640.
To summarize, the inflation-adjusted increases for 2024 are:
- Health Flexible Spending Accounts Contribution Limit: Increases to $3,200 in 2024 (up $150 from $3,050 in 2023)
- FSA Carryover Limit: Increases to $640 in 2024, up from $610 in 2023
For a complete listing of IRS tax inflation adjustments for tax year 2024, visit irs.gov.