What You Must Know
- That is a $150 enhance 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 allow the carryover of unused quantities, the utmost 2024 carryover quantity to 2025 can be $640.
The Inner 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 enhance 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 coated by different well being plans. Including to the potential tax profit, quantities contributed to FSA are typically not topic to federal earnings tax, Social Safety tax or Medicare tax.
