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IRS Releases 2024 Limits for QSEHRA, Health FSA and Commuter Benefits
By: Gene Ennis
IRS 2024 Limits FSA, QSEHRA, Commuter:
The IRS released Revenue Procedure 2023-34 which contains its 2023 inflation adjusted maximum contribution limits for health FSAs, commuter benefits, adoption assistance, QSEHRAs, and more. They also increased the health FSA carryover limit for 2024.
Among the tax provisions of importance to Core Documents’ clients are those relating to the health FSAs, commuter benefits, adoption assistance and the QSEHRA. Below are some of the highlights for 2024.
The new 2024 limits are:
|
2024 Limits |
2023 Limits |
Health FSA |
$3,200 |
$3,050 |
FSA carryover |
$640 |
$610 |
Commuter Benefits |
$315 |
$300 |
Adoption assistance |
$16,810 per year |
$15,950 |
Qualified Small Employer HRA – QSEHRA |
Self-Only Coverage |
$6,150 |
$5,850 |
Family Coverage |
$12,450 |
$11,800 |
Health Savings Account and High Deductible Health Plan Limits
Earlier this year, the IRS in Revenue Procedure 2023-23 announced the inflation-adjusted amounts for health savings account and high-deductible health plans for 2024. The HSA limit for self-only/family coverage will increase to $4,150 and $8,300, respectively for 2024. The maximum annual out-of-pocket expense limits for high deductible health plans for self-only and family coverage will increase in 2024. The minimum annual deductible for self-only and family coverage will also increase in 2024.
2023 Health Savings Accounts/HDHP Limits
|
2024 Limits |
2023 Limits |
HSA Contribution — Annual Contribution Limit |
Self-Only Coverage |
$4,150 |
$3,850 |
Family Coverage |
$8,300 |
$7,750 |
Catch-Up Contributions (age 55 or older) |
$1,000 |
$1,000 |
High Deductible Health Plan – Minimum Annual Deductible |
Self-Only Coverage |
$1,600 |
$1,500 |
Family Coverage |
$3,200 |
$3,000 |
High Deductible Health Plan – Maximum Out of Pocket Limit |
Self-Only Coverage |
$8,050 |
$7,500 |
Family Coverage |
$16,100 |
$15,000 |
Employers should review their various benefit plan documents such as the HSA, QSEHRA, health fsa, qualified transportation fringe benefits and adoption assistance plans to ensure that the increased limits are properly stated and implemented for 2024.
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