Employee Benefit Plan Limits for 2024

Many employee benefits are subject to annual dollar limits that are updated for inflation before the beginning of each calendar year. Most of these annual dollar limits will increase in 2024. Note that some benefit limits are not adjusted for inflation, such as the contribution limit for dependent care flexible spending accounts (FSAs) and the catch-up contribution limit for health savings accounts (HSAs).

Employers should confirm that payroll systems are updated for the 2024 limits and that the new limits are communicated to employees.

The following benefit limits apply for 2024:

HSA Contributions

• Single coverage: $4,150 (up $300 from 2023)

• Family coverage: $8,300 (up $550 from 2023)

• Catch-up contributions: $1,000 (not adjusted for inflation)

Health FSA Limits

• Employee pre-tax contributions: $3,200 (up $150 from 2023)

• Carryover of unused funds: $640 (up $30 from 2023)

Dependent Care FSA Contributions

• $5,000 or $2,500 if married and filing taxes separately (not adjusted for inflation)

401(k) Contributions

• Employee elective deferrals (pre-tax and Roth contributions): $23,000 (up $500 from 2023)

• Catch-up contributions: $7,500 (no change from 2023)

Transportation Fringe Benefits

• Monthly limits: $315 (up $15 from 2023)