IRS Announces 2024 Employee Benefit Plan Limits

Nov 20, 2023 | Employee Benefits, Employee Health Benefits, GTM Blog

The IRS recently announced the cost-of-living adjustments for employer-sponsored retirement and employee benefit plans for 2024.

The IRS recently announced the cost-of-living adjustments for employer-sponsored retirement and employee benefit plans for 2024. Most of these annual dollar limits will increase in the new year.

Household employers that provide health, retirement, and other types of benefits may have an advantage when recruiting top candidates for their positions as well as retaining their best employees.

Some benefit limits that are not indexed for inflation include the Dependent Care FSA limit and the catch-up contribution limit for HSAs.

Limit	2023	2024	Change
HSA Contribution Limit
Self-only	$3,850	$4,150	+ $300
Family	$7,750	$8,300	+ $550
Catch-up contributions*	$1,000	$1,000	No change
HDHP Minimum Deductible
Self-only	$1,500	$1,600	+ $100
Family	$3,000	$3,200	+ $200
HDHP Out-of-Pocket Maximum
Self-only	$7,500	$8,050	+ $550
Family	$15,000	$16,100	+ $1,110
Health FSA
Limit on employees’ pre-tax contributions	$3,050	$3,200	+ $150
Carryover limit	$610	$640	+ $30
Dependent Care FSA*
Tax exclusion	$5,000 ($2,500 if married and filing separately)	$5,000 ($2,500 if married and filing separately)	No change
Transportation Fringe Benefits (Monthly Limits)
Transit pass and vanpooling (combined)	$300	$315	+ $15
Parking	$300	$315	+ $15
410(k) Contributions
Employee elective deferrals	$22,500	$23,000	+ $500
Catch-up contributions	$7,500	$7,500	No change
Limit on total contributions	$66,000	$69,000	+ $3,000
Adoption Assistance Benefits
Tax exclusion	$15,950	$16,810	+ $860

* Limits that are not adjusted for inflation

GTM can help

GTM can help you set up health benefits and/or a retirement plan for your employee. These types of benefits are great tools for recruitment and retention and can lower your and your employee’s tax responsibilities. For a complimentary consultation with a household employment expert, call us at (800) 929-9213 or schedule time with us at your convenience.