by Matt Gerard
on November 9, 2023
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.
