IRS Announces 2024 Limits Increases

Recently, the IRS announced its cost of living adjustments for the dollar limitations on qualified HDHPs, health savings accounts, flexible spending accounts, retirement plans, and PCORI fees for the 2024 tax year. Due to the increasing inflation, many of these limits went up significantly.

Qualified High Deductible Health Plan Increases20232024
Minimum Deductible$1,500 single
$3,000 family
$1,600 single
$3,200 family
Maximum Out-of-Pocket Limit$7,500 single
$15,000 family
$8,050 single
$16,100 family
Qualified HDHP increases from 2023 to 2024.

Health Savings Accounts20232024
Contribution Limit – Self-Only$3,850$4,150
Contribution Limit – Family Coverage$7,750$8,300
HSA increases from 2023 to 2024.

Flexible Spending Account Increases20232024
Healthcare Deferral Limit$3,050$3,200
Healthcare Carryover Limit$610$640
Parking Limit$300$315
Mass Transit Limit$300$315
Dependent Care with Married and Joint Taxes or Head of House$5,000$5,000
Dependent Care with Married and Separate Taxes$2,500$2,500
FSA increases from 2023 to 2024.

Retirement Savings Increases20232024
401(k), 403(b), & 457(b) Elective Deferral Limit$22,500$23,000
Catch-Up Contribution Limit$7,500$7,500
Defined Contribution Limit$66,000$69,000
Defined Benefit Limit$265,000$275,000
Annual Compensation Limit$330,000$345,000
Highly-Compensated Employee Threshold$150,000$155,000
Top Heavy Key Employee Threshold$215,000$220,000
Social Security Taxable Wage Base$160,200$168,600
Retirement Savings increases from 2023 to 2024.

PCORI Fee Increases20232024
Rate Per Average Lives Covered$3.00$3.22
PCORI Fee increases from 2023 to 2024.

Questions on how to keep in compliance with these increases? Give us a call today!

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Eric Thieringer President
Eric Thieringer is president of Eli Advisors, an HR, payroll and employee benefits firm focused on serving small to mid-size organizations. Eli's services and support address the frustrating gaps that challenge employers and their employees. By solving these problems, Eli Advisors creates financially sustainable programs and services that help organizations attract, retain, and engage the talent needed to succeed.