2024 FSA Contribution Limits Announced

The IRS announced the new limits on November 9, 2023.

Highlights of changes coming in 2024:

FSA Contributions: Contributions to a healthcare flexible spending account have increased $150 to $3,200 – up from $3,050 in 2023.

FSA Carryover Amount: If the employer allows for carry-over, FSA participants can now carry over $640 – up $30 from $610 in 2023.

Transit & Parking Benefits: The monthly contribution limit on parking and transit benefits will increase to $315 – up from $300 in 2023.

Adoption Assistance Program: The maximum exclusion for qualified adoption expenses under the adoption assistance program is now 16,810 – up from $15,950 in 2023.

	Taxable Years Beginning in 2024	Taxable Years Beginning in 2023
Limit on voluntary employee salary reduction contributions to a health flexible spending arrangement (Section 3.16 of Rev. Proc. 2021-45)	$3,200	$3,050
Maximum carryover amount of unused FSA amounts (Section 3.16 of Rev. Proc.2021-45	$640	$610
Monthly limit on fringe benefit exclusion for transit and parking (Section 3.17 of Rev. Proc. 2021-45)	$315	$300
Maximum exclusion for qualified adoption expenses furnished pursuant to an adoption assistance program (Section 3.19 of Rev. Proc. 2021-45)	$16,810	$15,950
Maximum reimbursement from a qualified small employer health reimbursement arrangement (QSEHRA) (Section 3.62 of Rev. Proc. 2022-38)	$6,150 ($12,450 for family coverage)	$5,850 ($11,800 for family coverage)

The above chart does not include all the provisions under the cost-of-living adjustment. 

For a full break down of the changes made by the IRS for benefit account contributions, see the full details here.