2024 FSA Deferral Limits

The IRS has released Rev. Proc. 2023-34 whereby it announced various changes to tax benefits based on inflation. For the taxable years beginning in 2024, the dollar limitation under §125(i) on voluntary employee salary reductions for contributions to health flexible spending arrangements is $3,200 (increase from $3050 in 2023). If the plan permits the carryover of unused amounts, the maximum carryover is $640 (increase from $610 in 2023).