2024 health FSA, other health and fringe benefit limits now set
November 10, 2023
IRS Rev. Proc. 2023-34 gives the 2024 contribution and benefit limits for health flexible spending arrangements (FSAs), qualified small-employer health reimbursement a`rrangements (QSEHRAs), long-term care (LTC) policies, transportation fringe benefits and adoption assistance programs. The 2024 figures reflect the increase in the average chained Consumer Price Index for All Urban Consumers (C-CPI-U) for the 12 months ending Aug. 31, 2023, after applying statutory rounding rules.
Health FSA, QSEHRA and LTC limits
This table shows the 2024 adjusted amounts for health FSAs, QSEHRAs and qualified LTC policies, along with the limits for 2023 and 2022. The health FSA carryover limits shown reflect the maximum unused funds that can carry over to the next plan year.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Health FSA limits (IRC §125(i)) | |||
| Maximum salary reduction contribution | $3,200 | $3,050 | $2,850 |
| Maximum health FSA carryover | 640 | 610 | 570 |
| QSEHRA limit (IRC § 9831(d)) | |||
Maximum annual benefit |
|||
| Self-only coverage | 6,150 | 5,850 | 5,450 |
| Family coverage | 12,450 | 11,800 | 11,050 |
| Qualified LTC policy limits (IRC § 213(d) and 7702B(d)(4)) | |||
| Premium limits at age | |||
| 40 or younger | 470 | $480 | $450 |
| 41–50 | 880 | 890 | 850 |
| 51–60 | 1,760 | 1,790 | 1,690 |
| 61–70 | 4,710 | 4,770 | 4,510 |
| Older than 70 | 5,880 | 5,960 | 5,640 |
| Per diem limit | 410 | 420 | 390 |
The 2024 adjusted amounts for health savings accounts (HSAs), HSA-qualifying high-deductible health plans, excepted-benefit HRAs, out-of-pocket maximums in nongrandfathered group health plans and various indexed amounts for the ACA’s employer-shared responsibility provision were announced earlier this year.
Qualified transportation fringe benefits and adoption assistance programs
This table shows the 2024 adjusted figures for qualified transportation fringe and adoption assistance benefits set by Rev. Proc. 2023-34, along with amounts for 2023 and 2022.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Tax-free qualified transportation fringe benefits (IRC § 132 (f)) | |||
| Monthly qualified parking, transit passes or commuter highway vehicles | $315 | $300 | $280 |
| Qualified adoption assistance programs (IRC § 137) | |||
| Exclusion for child with special needs (regardless of expenses incurred) | 16,810 | 15,950 | 14,890 |
| Aggregate dollar limit for all taxable years | 16,810 | 15,950 | 14,890 |
| Phaseout begins at modified AGI of | 252,150 | 239,230 | 223,410 |
| Phaseout completed at modified AGI of | 292,150 | 279,230 | 263,410 |
Related resources
Non-Mercer resources
- Rev. Proc. 2023-34 (IRS, Nov. 9, 2023)
- IRS provides tax inflation adjustments for tax year 2024 (IRS, Nov. 9, 2023)
- Notice 2020-33 (IRS, May 12, 2020)
Mercer Law & Policy resources
- 2024 quick benefit facts (Nov. 9, 2023)
- 2024 affordability percentage for employer health coverage drops (Aug. 23, 2023)
- 2024 transportation and health FSA limits projected (Aug. 15, 2023)
- 024 HSA, HDHP and excepted-benefit HRA figures set (May 16, 2023)
- Summary of 2023 benefit-related cost-of-living adjustments (Jan. 25, 2023)
- IRS offers relief to cafeteria plans, HDHPs, individual-coverage HRAs (May 28, 2020)
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