The Internal Revenue Service recently released Rev. Proc. 2023-34, announcing certain cost-of-living adjustments for calendar year 2024. The dollar limitation on voluntary employee salary reductions for contributions to health Flexible Spending Accounts (FSA) is increasing to $3,200 (up from $3,050). If a cafeteria plan permits health FSA carryovers, the maximum amount that can be carried over to the 2025 plan is $640 (up from $610).
Health Flexible Spending Account Limits by Tax Year
| Health Flexible Spending Accounts Limits by Tax Year | ||||
| 2024 | 2023 | 2022 | 2021 | 2020 |
| $3,200 | $3,050 | $2,850 | $2,750 | $2,750 |
For additional guidance on FSAs, please review IRS Publication 969.
If you have any questions, please contact your MedCost Account Manager.