By Leada Gore, al.com (TNS)

The maximum contribution amount for employees participating in a flexible spending account will increase in 2024, according to the IRS.

Starting in 2024, employees can contribute up to $3,200 tax-free to an FSA through payroll deduction, an increase of $150 from this year. The account can be used to pay for medical expenses not covered by other health plans—including copays, deductibles and a variety of medical products, as well as eye and dental care—and contributions are not subject to federal income tax, Social Security tax or Medicare tax.