The last of the employee benefits annual limits have now been released by the IRS. This summary includes recently released limits for Health FSAs, Dependent Care FSAs, Commute, and QSEHRA plans. Following is a recap comparing the 2023 numbers with the finalized 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
|
|
|
|
HRA Limits
|
2023
|
2024
|
|
QSEHRA – Self Only
|
$5,850
|
$6,150
|
|
QSEHRA - Family
|
$11,800
|
$12,450
|
|
EBHRA
|
$1,950
|
$2,100
|
|
|
|
Commute
|
2023
|
2024
|
|
Transit Pass Maximum (Monthly)
|
$300
|
$315
|
|
Parking (Monthly)
|
$300
|
$315
|
|
Bicycle (Monthly)
|
$20 |
$20
|
|
|
|
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
|
|
|
|
Compensation Thresholds
|
2023
|
2024
|
|
Highly Compensated Employee (HCE)
|
$150,000
|
$155,000
|
|
Key Employee Officer Comp
|
$215,000
|
$220,000
|
|
|
|
|
|
|
Other Limits
|
2023
|
2024
|
|
Educational Assistance (not indexed)
|
$5,250
|
$5,250
|
|
Adoption Assistance
|
$15,950
|
$16,810
|
|
Social Security Wage Base
|
$160,200
|
$168,600
|
References
IRS Rev. Proc. 2023-23 (Covering HSA, HDHP, and EBHRA limits)
IRS Notice 2023-75 (Covering Retirement plan limits)
IRS Rev. Proc. 2023-xx (Covering FSAs, QSEHRAs, and Commute Plans)
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.
