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.)