2024 FSA Contribution Limit
For 2024, the FSA Contribution Limit is $3,200 (Health FSA salary reduction limit) and $640 (Maximum carryover).
Effective 2024-01-01Source: Rev. Proc. 2023-34 (IRS)Verified 2026-08-29
Compared with 2023
| Item | 2023 | 2024 | Change |
|---|---|---|---|
| Health FSA salary reduction limit | $3,050 | $3,200 | +$150 (+4.9%) |
| Maximum carryover | $610 | $640 | +$30 (+4.9%) |
Who it applies to
Employees who contribute to a health flexible spending arrangement (health FSA) through a cafeteria plan under IRC § 125, and the employers that sponsor those plans.
What changed this year, and why
For taxable years beginning in 2024, the IRS set the annual limit on employee salary-reduction contributions to a health flexible spending arrangement (health FSA) at $3,200 under Internal Revenue Code § 125(i). If the employer's cafeteria plan allows unused amounts to be carried forward, the maximum carryover is $640.
Common questions
- Can I contribute more than $3,200 to my health FSA in 2024?
- No. The IRS limit on employee salary-reduction contributions to a health FSA for 2024 is $3,200. This is the maximum across all employers if you have more than one employer offering a health FSA.
- What happens to unused health FSA funds at the end of the year?
- If the plan permits a carryover, up to $640 of unused health FSA funds may be carried over to the next plan year. Plans that do not allow a carryover may instead offer a short grace period, or neither.
Every amount on this page is a published figure rather than yours. The Health FSA headroom takes the number you enter and works it out against them, showing which published figure it used.
Self-employed people cannot have a health FSA
A health FSA is an employer-established benefit plan, usually offered as part of a cafeteria plan alongside other employer-provided benefits. Because the plan must be established by an employer, self-employed persons cannot have one. If you are self-employed, you are not eligible for a health FSA regardless of your income or expenses. In addition, even among eligible employees, certain limitations may apply to highly compensated participants or key employees to keep the plan tax-qualified. Only employees of an employer that chooses to offer such a plan may participate, and they contribute through salary reduction.
Health FSAs are employer-established benefit plans. These may be offered in conjunction with other em- ployer-provided benefits as part of a cafeteria plan. Em- ployers have flexibility to offer various combinations of benefits in designing their plans. Self-employed persons aren’t eligible for FSAs.
Publication 969 (2024), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
You elect once a year and cannot change it at will
At the start of each plan year, you choose how much to contribute through salary reduction. That election sets the amount your employer will withhold from every paycheck for the entire year. Once made, the election is essentially locked in. You cannot increase or decrease your contribution mid-year just because your circumstances changed, you had a big medical bill, or you realize you elected too much. You can change or revoke your election only if specifically allowed by law and the plan. In practice, mid-year changes are allowed only after certain qualifying life events, such as marriage, birth of a child, or a change in employment status. The maximum salary reduction contribution for 2024 is $3,200. Because the election is rigid, it is important to base it on a careful estimate of your qualifying expenses for the year.
At the beginning of the plan year, you must designate how much you want to contribute. Then, your employer will de- duct amounts periodically (generally, every payday) in ac- cordance with your annual election. You can change or re- voke your election only if specifically allowed by law and the plan.
Publication 969 (2024), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
The whole election is available on day one
From the very first day of the plan year, you have access to the full amount you elected to contribute for the year, not just what you have paid in so far through payroll deductions. For example, if you elect $3,200 for the year but have only a small amount withheld from your pay by the time you have a medical procedure early in the year, you can still be reimbursed the full $3,200. The plan front-loads the entire election amount. This is sometimes called "spend before you fund." However, the rule has limits: you must still use the money only for qualified medical expenses, and any amounts you do not spend by the end of the plan year (plus any applicable grace period or carryover) are forfeited. For 2024, the maximum election is $3,200. Because the full amount is available immediately, you do not need to delay treatment to accumulate funds.
You must be able to receive the maximum amount of reimbursement (the amount you have elected to contribute for the year) at any time during the coverage period, regardless of the amount you have actually contributed.
Publication 969 (2024), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
Use it or lose it, and the two escapes from it
Health FSAs follow a "use-it-or-lose-it" rule: any money left in the account when the plan year ends is generally forfeited. You cannot simply cash out the balance. However, the IRS allows two ways for a plan to soften this result. First, the plan may offer a grace period of up to 2 1/2 months after the plan year ends, during which you can use the leftover funds for new qualified expenses. Second, the plan may allow a carryover of up to $640 of unused amounts into the next plan year. A plan may offer one of these options or neither, but it may not offer both. Any amount above the carryover limit is forfeited. The carryover does not reduce the maximum salary reduction contribution you may elect in the following year. Because of these limits, you should estimate your expenses carefully and not over-contribute.
FSAs are generally "use-it-or-lose-it" plans. This means that amounts in the account at the end of the plan year can't generally be carried over to the next year. However, the plan can provide for either a grace period or a carry- over. The plan can provide for a grace period of up to 2 1/2 months after the end of the plan year.
Publication 969 (2024), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
What the money may be spent on, and what it may not
FSA funds may be used only for qualified medical expenses as defined in the plan and in IRS Publication 502. These generally include the costs of diagnosis, treatment, and prevention of disease for you, your spouse, your dependents, and your children under age 27. Over-the-counter medicine (whether or not prescribed) and menstrual care products also qualify. However, you cannot receive distributions from your FSA for certain expenses, including amounts paid for health insurance premiums, long-term care coverage, or expenses already covered under another health plan. If you receive a reimbursement from your FSA, you cannot also claim those same expenses as an itemized medical deduction on Schedule A.
You can’t receive distributions from your FSA for the fol- lowing expenses. • Amounts paid for health insurance premiums. • Amounts paid for long-term care coverage or expen- ses. • Amounts that are covered under another health plan.
Publication 969 (2024), Health Savings Accounts and Other Tax-Favored Health Plans (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Rev. Proc. 2023-34 (IRS)
- Health FSA salary reduction limit
the dollar limitation under § 125(i) on voluntary employee salary reductions for contributions to health flexible spending arrangements is $3,200
- Maximum carryover
the maximum carryover amount is $640