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 |