The IRS has issued Revenue Procedure 2023-34, which contains 2024 limits for health flexible spending arrangements, qualified transportation fringe benefits, adoption assistance programs, and long-term care premiums.
Download this FYI Alert as a printable PDF.
Health flexible spending arrangements
The annual limit on employee salary reduction contributions to health flexible spending arrangements under Section 125(i) for plan years beginning in 2024 has increased by $150 from the 2023 limit. The maximum carryover amount has also increased.
|
2024 |
2023 |
|
| Maximum salary reduction amount |
$3,200 |
$3,050 |
| Maximum carryover amount |
$640 |
$610 |
Qualified transportation fringe benefits
The monthly limits under Section 132(f) for tax years beginning in 2024 increased from the 2023 limits.
| 2024 | 2023 | |
| Commuter highway vehicle and transit pass | $315 | $300 |
| Qualified parking | $315 | $300 |
Adoption assistance programs
For employer-provided adoption assistance programs, the maximum amount excludible from an employee’s income in 2024 (compared with 2023) for the adoption of a child is shown below. The excludible amount phases out for taxpayers with modified adjusted gross income that exceeds certain levels.
| 2024 | 2023 | |
| Excludible amount | $16,810 | $15,950 |
| Phase-out income thresholds | ||
| Phase-out begins | $252,150 | $239,230 |
| Phase-out complete | $292,150 | $279,230 |
Long-term care premiums
The limits under Section 213(d) for eligible long-term care premiums that qualify as medical expenses for tax years beginning in 2024 (compared with 2023) are shown below, based on attained age before the close of the taxable year. Note the premiums have decreased from 2023, although minimally.
|
2024 |
2023 |
|
| Age 40 or younger | $470 | $480 |
| > 40 but < 50 | $880 | $890 |
| > 50 but < 60 | $1,760 | $1,790 |
| > 60 but < 70 | $4,710 | $4,770 |
| > 70 | $5,880 | $5,960 |
Health savings accounts
The 2024 limits for contributions to health savings accounts and for high-deductible health plans were released earlier this year. (See our May 24, 2023 FYI.)
In closing
Our For Your Reference document outlining key retirement, health and other benefit plan limits and various key social security and Medicare figures, will be available shortly on Buck.com.
Volume 46 | Issue 24