Important Plan Limits for 2024
December 20, 2023
On November 9,2023, the IRS issued IRS Revenue Procedure 2023-34, which address annual inflation adjustments for more than 60 tax provisions. Included are new limits for Flexible Spending Accounts, Commuter Benefits and various other code provisions, as follows:
Flexible Spending Accounts
- Health Flexible Spending Account - $3,200 (increase of $150)
- Flexible Spending Account Carryover Maximum - $640 (if applicable; increase of $30)
- Dependent Care Account - $5,000 (no change)
- Adoption Assistance - $16,810 (increase of $860)
Commuter Benefit Accounts
- Parking Benefit - $315 (increase of $15)
- Transit Benefit - $315 (increase of $15)
On May 16, 2023, the IRS issued Revenue Procedure 2023-23, providing inflation-adjusted limits related to health savings accounts (HSAs) and high deductible health plans (HDHPs) for calendar year 2023. The following items are included:
Health Savings Accounts
Maximum Contribution Amount
- Individual - $4,150 (increase of $300)
- Family - $8,300 (increase of $550)
- Catch-up (age 55+) - $1,000 (no increase)
High Deductible Health Plan (HDHP) deductible amounts and expense limits for 2024 were also announced:
Annual Maximum Out-of-Pocket Limit for HDHP
- Individual - $8,050 (increase of $550)
- Family - $16,100 (increase of $1,100)
Annual Minimum Deductible Limit for HDHP
- Individual - $1,600 (increase of $100)
- Family - $3,200 (increase of $200)
Find these and historical qualified benefit plan limits in this handy reference guide.