Additional employee benefits annual limits and numbers have now been finalized by the IRS. Recently released limits include those for Health Savings Accounts (HSAs), High Deductible Health Plans (HDHPs), and Excepted Benefits Health Reimbursement Arrangements (EBHRAs).
Several of the 2024 limits are based on the Consumer Price Index (CPI) for the prior federal fiscal year (October 1 to September 30), so these indexed amounts have yet to be calculated. We typically see these released in late October.
The following is a recap comparing the 2023 numbers with the finalized and projected 2024 numbers.
HDHP and HSA Limits
|
2023
|
2024
|
|
HDHP Minimum Deductible – Self Only
|
$1,500
|
$1,600
|
|
HDHP Minimum Deductible – Family
|
$3,000
|
$3,200
|
|
HDHP OOP Limit – Self Only
|
$7,500
|
$8,050
|
|
HDHP OOP Limit – Family
|
$15,000
|
$16,100
|
|
HSA Contribution Limit – Self Only
|
$3,850
|
$4,150
|
|
HSA Contribution Limit – Family
|
$7,750
|
$8,300
|
|
HSA Contribution Limit – Catchup (55+)
|
$1,000
|
$1,000
|
|
|
|
ACA Limits
|
2023
|
2024
|
|
Health Plan OOP Limit – Self Only
|
$9,100
|
$9,450
|
|
Health Plan OOP Limit - Family
|
$18,200
|
$18,900
|
|
ACA Affordability Threshold
|
9.12%
|
8.39%
|
|
|
|
Flexible Spending Accounts (FSA)
|
2023
|
2024
|
|
Health FSA Election Maximum
|
$3,050
|
$3,200*
|
|
Health FSA Rollover Maximum
|
$610
|
$640*
|
|
Dependent Care Election Maximum (not indexed)
|
$5,000
|
$5,000
|
*PROJECTED
|
|
|
HRA Limits
|
2023
|
2024
|
|
QSEHRA – Self Only
|
$5,850
|
$6,000*
|
|
QSEHRA - Family
|
$11,800
|
$12,200*
|
|
*EBHRA
|
$1,950
|
$2,100
|
*PROJECTED
|
|
|
Commute
|
2023
|
2024
|
|
Transit Pass Maximum (Monthly)
|
$300
|
$315*
|
|
Parking (Monthly)
|
$300
|
$315*
|
|
Bicycle (Monthly)
|
$20 |
$20
|
*PROJECTED
|
|
|
Retirement Plans
|
2023
|
2024
|
|
Elective Deferral Maximum
|
$22,500
|
$23,000*
|
|
Catch-up Maximum (50+)
|
$7,500
|
$7,500
|
|
Total Contribution Limit (<50)
|
$66,000
|
$69,000*
|
|
Total Contribution Limit (50+)
|
$73,500
|
$76,500*
|
|
401(a) Compensation Limit
|
$330,000
|
$345,000*
|
*PROJECTED
|
|
|
Compensation Thresholds
|
2023
|
2024
|
|
Highly Compensated Employee (HCE)
|
$150,000
|
$155,000*
|
|
Key Employee Officer Comp
|
$215,000
|
$225,000*
|
|
*PROJECTED
|
|
|
|
|
Other Limits
|
2023
|
2024
|
|
Educational Assistance (not indexed)
|
$5,250
|
$5,250
|
|
Adoption Assistance
|
$15,950
|
$16,550*
|
|
Social Security Wage Base
|
$160,200
|
$167,000
|
*PROJECTED
Updates
This article will be updated and re-released when the 2024 limits are finalized.
Terms
HSA
The HSA is an individual Health Savings Account that is owned by the employee and may be used for the payment of medical expenses that are not covered by a qualified High Deductible Health Plan (HDHP), including expenses that go toward satisfying the deductible. This maximum is inclusive of employer and employee contributions.
FSA
A Health or Dependent Care Flexible Spending Account (FSA) allows participating employees to reduce their earnings on a pre-tax basis to pay for certain qualified expenses. Salary reductions provide significant tax savings to both the employee and the employer.
FSA Rollover (Carryover)
Employers may offer employees the option of rolling over a portion of their remaining Health FSA balance each year to be used in the same type of plan during the following plan year. The final balance that is available for rollover will be determined after the current plan year’s claim submission deadline.
Transit
The Transit Plan allows employees to set money aside on a pre-tax basis for mass transit expenses. Employees get to use tax-free money for their commuting expenses when traveling to and from work.
Parking
The Parking Plan allows employees to set money aside on a pre-tax basis for work-related parking expenses. Employees get to use tax-free money for parking at or near an office location or mass transit hub.
Educational Assistance
Funds received through Employer-sponsored tuition assistance plans and educational assistance programs (EAPs) allow employees to generally exclude such amounts from their income when the funds are used to finance employee education-related expenses.
