IRS Releases Annual Increases to Health FSA and Transportation Fringe Benefit Limits for 2024
Monday, November 20, 2023
IRS Releases Benefit Limits 2024 inflation adjustments

On November 9th, the IRS announced additional inflation adjustments for 2024, including to the annual contribution and carryover limits for healthcare flexible spending accounts and the monthly limit for qualified transportation fringe benefits. The IRS did not increase the annual contribution limit for dependent care flexible spending accounts because that limit is not indexed to inflation. The new limits are set forth below. This announcement follows the IRS’s release of the inflation adjustments for retirement plans last month.

Health FSAs
  2022 2023 Increase from 2022 to 2023
Annual Contribution Limit $3,050 $3,200 $150
Carryover Limit $610 $640 $30
Qualified Transportation Fringe Benefits
  2022 2023 Increase from 2022 to 2023
Transportation in a Commuter Vehicle or Transit Pass $300/month $315/month $15/month
Qualified Parking $300/month $315/month   $15/month  

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