Flexible Spending Account Limits Will Increase in 2024

The Internal Revenue Service announced that the Health Care Flexible Spending Account (FSA) contribution limit will increase from $3,050 to $3,200 in 2024.

This program allows federal employees to set aside an annual pre-tax amount they anticipate spending for out-of-pocket health, dental and vision expenses. FSAs can be used to purchase a wide range of items—including masks, hand sanitizing wipes and cold season essentials like pain relievers, cold and flu medicine and cough drops.

Federal Benefits Open Season is the one time of year employees can opt in to make pre-tax contributions to their health care and dependent care FSAs.

NTEU members can learn more about FSAs and get expert help choosing a health care plan by visiting Consumers’ Checkbook Online Guide. Members get free access to this valuable tool throughout the open season, which runs through Dec. 11.