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DBS Digest

Navigating employee benefits in an ever-changing regulatory landscape.

Yesterday, the Internal Revenue Service (IRS) announced the annual inflation adjustments for more than sixty tax provisions for tax year 2024.

Highlights of changes in Revenue Procedure 2023-34

The items of greatest interest to most DBS agents and clients include the following dollar amounts:

  • Qualified Transportation Fringe Benefit – the monthly limitation for the qualified transportation fringe benefit and the monthly limitation for qualified parking increases to $315, an increase of $15 from the limit for 2023.
  • Health Flexible Spending Accounts (FSAs) – the dollar limitation for employee salary reductions for contributions to health FSAs increases to $3,200. For plans that permit the carryover of unused amounts, the maximum carryover amount is $640, an increase of $30 from 2023.

Note: DBS will automatically increase FSA plan limits – including carryover – so no action is required at this time. (However, if a client previously directed DBS to not implement annual adjustments, the limits will not change.)