The IRS has released the 2024 limits for certain employee benefit plans and the dollar amounts used for certain nondiscrimination testing.
Health Flexible Spending Accounts. The 2024 limit for employee contributions to health flexible spending accounts will increase to $3,200. If a cafeteria plan permits the carryover of unused amounts, the maximum permitted carryover amount will increase to $640.
Transportation and Parking. The qualified transportation benefit limit for transit passes and for qualified parking will increase to $315 per month.
Health Savings Accounts. The health savings account (“HSA”) contribution limit for a self-only coverage under a high deductible health plan (“HDHP”) is $4,150, and $8,300 for an individual with family coverage under a HDHP.
To qualify as an HDHP in 2024, a plan must have a minimum annual deductible of a$1,600 for self-only coverage, or $3,200 for family coverage. The maximum out-of-pocket expenses permitted for a HDHP is $8,050 for self-only coverage, or $16,100 for family coverage.
Excepted Benefit HRA. The maximum amount that may be made newly available for the plan year for an excepted benefit HRA is $2,100.
Highly Compensated Employee. An employee who earns more than $155,000 during the look-back year will be considered an HCE.
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