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.
Households with separate employer plans can contribute up to $6,400 a year. Self-employed individuals are not eligible.
For FSAs that allow carryover of unused amounts, the maximum for 2024 to 2025 is $640, up from $610 that can be carried over from 2023 to 2024.
You can see a list of allowed FSA items here.
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©2023 Advance Local Media LLC. Visit al.com. Distributed by Tribune Content Agency LLC.
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Tags: Benefits, Human Resources, IRS, Payroll, Small Business, Taxes
