Home Life Insurance Open Enrollment Reminder: 2024 FSA Contribution Restrict Set at $3,200

Open Enrollment Reminder: 2024 FSA Contribution Restrict Set at $3,200

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Open Enrollment Reminder: 2024 FSA Contribution Restrict Set at $3,200

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What You Have to Know

  • That is a $150 improve from 2023.
  • The brand new restrict means married {couples} can collectively contribute as much as $6,400 for his or her family.
  • For FSAs that let the carryover of unused quantities, the utmost 2024 carryover quantity to 2025 might be $640.

The Inside Income Service revealed its annual inflation changes a number of weeks in the past for greater than 60 tax provisions for tax yr 2024, and included within the replace was a $150 improve within the restrict for annual contributions to versatile spending preparations (FSAs).

Now that it’s open enrollment season for office retirement and well being care advantages, the IRS is reminding taxpayers about their alternative to contribute as much as $3,200 to an FSA in 2024.

The brand new restrict means married {couples} can collectively contribute as much as $6,400 for his or her family, assuming each spouses have entry to an FSA-eligible plan in their very own office.

By an FSA, taxpayers could also be eligible to make use of tax-free {dollars} to pay medical bills not lined by different well being plans. Including to the potential tax profit, quantities contributed to FSA are usually not topic to federal revenue tax, Social Safety tax or Medicare tax.

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