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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.
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