On November 9, 2023, the IRS released the long awaited 2024 maximum contribution limits for Flexible Spending Arrangements (FSA) and Commuter accounts. A bit later than usual, Revenue Procedure 2023-34 follows the IRS’s announcement of the 2024 401(k) annual contribution limits, which were released November 1st.
For taxable years beginning in 2024, the annual contribution limit for health FSAs has increased from $3,050 in 2023 to $3,200. Additionally, the maximum carryover amount has also increased from $610 in 2023 to $640. The permissibility of carrying over unused FSA funds is dependent on the language of the cafeteria plan.
The maximum contribution amount for dependent care assistance plans remains unchanged for 2024 and will continue to cap contributions at $5,000 per family.
Finally, for taxable years beginning in 2024, the monthly limitation for transportation fringe benefits (e.g., commuter highway vehicle, transit pass, and qualified parking) increased from $300 in 2023 to $315.
2024 FSA and Commuter Contribution Limits | 2023 | 2024 |
Health FSA | $3,050 | $3,200 |
FSA Carryover | $610 | $640 |
Dependent Care Assistance | $5,000/family | $5,000/family |
Transit | $300/month | $315/month |
Qualified Parking | $300/month | $315/month |
