Newly Increased 2024 Contribution Limits for Flexible Spending Accounts Have Been Announced By the IRS
On November 9, 2023, the IRS released Revenue Procedure 2023-34, which provides increased limits for health care flexible spending account (FSA) contributions and related carryover amounts of $3,200 and $640, respectively, for the 2024 plan year (up from the 2023 limits of $3,050 and $610, respectively). In addition, the limit for 2024 qualified transit and parking expenses (which represent the non-taxable limits for employer-provided commuter benefit programs), increases to $315 (up from $300 in 2023).
The following is a reference tool for employers that summarizes 2024 limits applicable to health and welfare plans that are reflected either in Revenue Procedure 2023-34 or earlier guidance. Also included are the 2024 contribution limits required by employers subject to the San Francisco Health Care Security Ordinance (SFHCSO).
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For questions regarding this Legislative Update or any other related compliance issues, please contact your Burnham Benefits Consultant or Burnham Benefits at 949‐833‐2983 or inquiries@burnhambenefits.com.
This Legislative Update was prepared by the Baldwin Regulatory Compliance Collaborative (the “BRCC”), a partnership of compliance professionals offering client support and compliance solutions for the benefit of the Baldwin Risk Partners organization, which includes: Jason Sheffield, BRP National Director of Compliance; Richard Asensio, Burnham Benefits Insurance Services; Nicole L. Fender, the Capital Group; Bill Freeman, AHT Insurance; Stephanie Hall, RBA/TBA; Caitlin Hillenbrand, AHT Insurance; Paul Van Brunt, Baldwin Krystyn Sherman Partners (BKS); and Natashia Wright, Insgroup.
Burnham Benefits and the BRCC do not engage in the practice of law and this publication should not be construed as the providing of legal advice or a legal opinion of any kind. The consulting advice we provide is intended solely to assist in assessing its compliance with applicable federal and state law requirements, and is based on our interpretation of federal guidance in effect as of the date of this publication. To the best of our knowledge, the information provided herein, and assumptions relied on, are reasonable and accurate as of the date of this publication. Furthermore, to ensure compliance with IRS Circular 230, any tax advice contained in this publication is not intended to be used, and cannot be used, for purposes of (i) avoiding penalties imposed under the United States Internal Revenue Code or (ii) promoting, marketing or recommending to another person any tax-related matter.