Highly Compensated Employee 2024 Fsa

Highly Compensated Employee 2024 Fsa

Here’s a look at what’s changing: Encourage the use of digital wallets for fsa debit cards.


Highly Compensated Employee 2024 Fsa

Amounts contributed are not subject to federal income tax, social security tax or medicare tax. For the 2024 calendar year, an employee who earns more than $150,000 is considered an hce.

However, Hces May Face Additional Limits:

The 2023 dependent care fsa contribution.

Officers Making Over $225,000 In 2024 (Up From $215,000 For 2023) Owners Holding More Than 5% Of The Stock Or Capital.

The internal revenue code (irc) allows pretax contributions to fsas as long as the benefit does not favor highly compensated employees (hces).

Images References :

Officers Making Over $225,000 In 2024 (Up From $215,000 For 2023) Owners Holding More Than 5% Of The Stock Or Capital.

If your employer limits your contribution because you’re a highly compensated employee (hce), the minimum compensation to be counted as an hce is $150,000 in 2023.

*Special Limits To The Dependent Care Fsa For Highly Compensated Faculty And Staff.

We updated each number below as figures are released throughout the year.