IRS Announces 2024 Increases to FSA Contribution Limits
November 29, 2023
The IRS has announced changes in the contribution maximums for Flexible Spending Account (FSA) plans.
Healthcare Flexible Spending Account
The Healthcare FSA, which provides employees the ability to set aside money on a pre-tax basis to pay for eligible medical, dental, and vision expenses will have an increase to its contribution maximum from $3,050 to $3,200 for 2024.
Limited Purpose FSA
The new contribution limit will also apply to the Limited Purpose FSA which reimburses eligible dental and vision expenses. Limited Purpose FSA limits will also increase from $3,050 to $3,200 for 2024.
The FSA Carryover limit provides employers the option to transfer a maximum amount of remaining FSA balances at a plan year’s end to carryover for use during the next plan year. This is available with Healthcare and Limited Purpose FSAs only. The carryover limits for this account will increase from $610 to $640 for 2024.
Commuter Benefits help employees pay for certain parking, mass transit and/or vanpooling expenses with pre-tax dollars. The contribution limits for this account will increase from $300 to $315 for 2024.
IMPORTANT NEXT STEPS
You have until Friday, December 15, 2023 at midnight to make election changes to either your Healthcare FSA or Limited Purpose FSA.
To make an election change, please sign in to the MAP enrollment system. For step-by-step instructions on how to make a change in the MAP enrollment system, click here.
If you have questions, call the SEHP (785) 368-6361.