December 14, 2023 • News

2024 Flexible Spending Arrangement Contribution Limit Rises to $3,200

During 2024 open enrollment season for healthcare coverage, the Internal Revenue Service (IRS) reminds employers and employees that employees who choose to participate in Flexible Spending Arrangement (FSAs) can contribute up to $3,200 through payroll deductions to use tax-free dollars to pay for qualified medical expenses not covered by other health plans. This is an increase of $150 over 2023. For FSAs that permit the carryover of unused amounts, the maximum 2023 carryover to 2024 is $610; the maximum 2024 carryover amount to 2025 is $640. For more information, see the IRS press release or see its Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans.