Health and Welfare

IRS Announces Some 2024 Cost-of-Living Adjustments for Welfare Benefit Plans

On November 9, 2023, the IRS issued Revenue Procedure 2023-34 which provides some of the 2024 cost-of-living adjustments for inflation as provided by the Internal Revenue Code. For plan sponsors of welfare benefit and fringe benefit plans, the most applicable cost-of-living adjustments are listed in the following table:

Cafeteria Plan Limits and Thresholds
 
Health FSAs 2024 (new) 2023 (old)
Maximum Health FSA Salary Reductions $3,200 $3,050
Maximum Health FSA Carryover Amount $640 $610
Standard Mileage Rate (for travel to obtain medical care) TBA $.22
     
DCAPs 2024 (new) 2023 (old)
Maximum DCAP Amount    
Unless Married Filing Separately $5,000 $5,000
If Married Filing Separately $2,500 $2,500
     
Deemed Income of Spouse (Incapable of Self-Care or Full-Time Student)    
With 1 Qualifying Individual $250/mo. $250/mo.
With 2 or More Qualifying Individuals $500/mo. $500/mo.
     
Adoption Assistance 2024 (new) 2023 (old)
Maximum Exclusion for Employer-Provided Adoption Assistance $16,810 $15,950
Adoption Tax Credit Limit $16,810 $15,950
Maximum Exempt from Phased Reduction of Exclusion $252,150 $239,230
Maximum Allowable for Exclusion and Credit $292,150 $279,230
     
Prohibited Group: Nondiscrimination Tests 2024 (new) 2023 (old)
Highly Compensated Employee Dollar Threshold $155,000 $150,000
     
Key Employee Dollar Thresholds    
Officer Group $220,000 $215,000
More-Than-1% Owner $150,000 $150,000
     
Consumer-Driven Health Care Limits and Thresholds
 
       
EBHRAs 2024 (new) 2023 (old)
Maximum Newly Available Benefit Amount $2,100 $1,950
       
HSAs 2024 (new) 2023 (old)
HDHP Minimum Annual Deductible    
  Self-Only $1,600 $1,500
  Family $3,200 $3,000
       
HDHP Out-of-Pocket Maximum    
  Self-Only $8,050 $7,500
  Family $16,100 $15,000
       
Maximum Contribution Limit    
  Self-Only $4,150 $3,850
  Family $8,300 $7,750
       
Catch-Up Contribution Limit $1,000 $1,000
       
QSEHRAs 2024 (new) 2023 (old)
Maximum Reimbursement Allowed    
  Single $6,150 $5,850
  Family $12,450 $11,800
     
Fringe Benefit Limits and Thresholds
 
Adoption Assistance 2023 (new) 2023 (old)
Maximum Exclusion for Employer-Provided Adoption Assistance $16,810 $15,950
Adoption Tax Credit Limit $16,810 $15,950
     
Transportation Fringe Benefits 2024 (new) 2023 (old)
Parking $315/mo. $300/mo.
Transit Passes & Vanpooling (combined) $315/mo. $300/mo.
     

Be sure to check www.nbsbenefits.com/limits for the latest information on all limits related to retirement, health, and welfare benefit plans as well as consumer-driven health care.