Many employee benefits have annual dollar limits, adjusted for inflation by the IRS. Common benefits affected include:
- High deductible health plans (HDHPs) and health savings accounts (HSAs)
- Health flexible spending accounts (FSAs)
- 401(k) plans
- Transportation fringe benefit plans
The IRS announces these limits before each calendar year, allowing employers to update plans accordingly. This overview provides 2024 inflation-adjusted limits, with 2023 limits for comparison. Note that some limits, like dependent care FSA and HSA catch-up contributions, remain unchanged. Stay informed for effective plan management.
| Limit | 2023 | 2024 | Change |
| HAS Contribution | |||
| Self Only | $3,850 | $4,150 | Up $300 |
| Family | $7,750 | $8,300 | Up $500 |
| Catch-up Contributions* | $1,000 | $1,000 | No change |
| HDHP Minimum Deductible | |||
| Self Only | $1,500 | $1,600 | Up $100 |
| Family | $3,000 | $3,200 | Up $200 |
| HDHP Out-of-Pocket Maximum | |||
| Self Only | $7,500 | $8,050 | Up $550 |
| Family | $15,000 | $16,100 | |
| Health FSA | |||
| Limit on employees’ pre-tax contributions | $3,050 | $3,200 | Up $150 |
| Carryover limit | $610 | $640 | Up $30 |
| Dependent Care FSA* | |||
| Tax exclusion | $5,000 ($2,500 if married and filing taxes separately) | $5,000 ($2,500 if married and filing taxes separately) | No change |
| Transportation Fringe Benefits (Monthly Limits) | |||
| Transit pass and vanpooling (combined) | $300 | $315 | Up $15 |
| Parking | $300 | $315 | Up $15 |
| 401(k) Contributions | |||
| Employee elective deferrals | $22,500 | $23,000 | Up $500 |
| Catch-up contributions | $7,500 | $7,500 | No change |
| Limit on total contributions | $66,000 | $69,000 | Up $3,000 |
| Adoptions Assistance Benefits | |||
| Tax exclusion | $15,950 | $16,810 | Up $860 |
*Limits that are not adjusted for inflation
LINKS AND RESOURCES
IRS Revenue Procedure 2023-23: 2024 limits for HSAs and HDHPs
IRS Notice 2023-75: 2024 limits for retirement plans
IRS Revenue Procedure 2023-34: 2024 limits for health FSAs, adoption assistance and transportation fringe benefits
Posted in Benefits