The Internal Revenue System (IRS) recently announced the 2024-dollar limits for employee benefits including:
- High Deductible Health Plans (HDHPs),
- Health Savings Accounts (HSAs),
- Flexible Spending Accounts (FSAs),
- transportation benefits,
- and adoption assistance.
As cost-of-living expenses continue to rise due to inflation, the IRS annually adjusts contribution limits to accommodate spending increases.
- The minimum deductible for those with single coverage will be $1,600. For those with family coverage, the limit will be $3,200.
- The maximum out-of-pocket will increase for those with single coverage to $8,050; and for those with family coverage, to $16,100.
HSA Contribution Limits
- Those with single HDHP coverage will be able to contribute up to $4,150, up $300 from 2023. Those with family HDHP coverage will be able to contribute up to $8,300, up $550 from 2023.
- Catch-up contributions will remain the same at $1,000.
- The health FSA limit on employees’ pre-tax contributions will increase to $3,200 with the carryover limit increasing to $640.
- The Dependent Care FSA (tax exclusion) contribution limit will remain the same at $5,000 ($2,500 if married and filing taxes separately).
- Transit pass and vanpooling (combined) will increase by $15 to $315.
- Parking will increase by $15 to $315.
- The maximum adoption credit for the adoption of a child allowed to an individual will be $16,810.
- For the adoption of a child, the amount excludable from an employee’s gross income begins to phase out for taxpayers with modified adjusted gross income in excess of $252,150.
- Both exclusion and the credit will be entirely phased for individuals with a modified adjusted gross income of $292,150 or more.
If you have any questions about the adjusted limits for 2024, please contact your dedicated Creative Benefits, Inc. team member.