On November 9, 2023, the IRS released Revenue Procedure 2023-34, which provides increased limits for health care flexible spending account (FSA) contributions and related carryover amounts of $3,200 and $640, respectively, for the 2024 plan year (up from the 2023 limits of $3,050 and $610, respectively). In addition, the limit for 2024 qualified transit and parking expenses (which represent the non-taxable limits for employer-provided commuter benefit programs), increases to $315 (up from $300 in 2023).
The following is a reference tool for employers that summarizes 2024 limits applicable to health and welfare plans that are reflected either in Revenue Procedure 2023-34 or earlier guidance. Also included are the 2024 contribution limits required by employers subject to the San Francisco Health Care Security Ordinance (SFHCSO).
1] Covered employers are required to make a minimum health care expenditure for most of their employees who work at least 8 hours per week within the geographic boundaries of the City. For 2024, managerial, supervisory and confidential employees earning more than $121,372/yr. (or $58.35/hr.) are exempt (for 2023, the exemption thresholds were $114,141/yr., or $54.88/hr.).
For questions regarding this Alert or any other related compliance issues, please contact your client experience team.