IRS Releases 2024 Tax Inflation Adjustments

The IRS has issued Revenue Procedure 2023-34, which contains cost-of-living adjustments for taxable years beginning in 2024 for over 60 tax provisions, including cafeteria plans.

The dollar limitation under Internal Revenue Code Section 125(i) on voluntary employee salary reductions for contributions to health flexible spending arrangements is $3,200, up from $3,050 for 2023. For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount is $640, up from $610 for 2023.

For additional information on the 2024 inflation-adjusted limits for other tax provisions, see Rev. Proc. 2023-34.