--- title: IRS Announces 2024 COLAs for Transportation Fringes, FSA Deferrals description: IRS announces 2024 COLAs for transportation fringes and FSAs. image: https://www.payroll.org/images/default-source/default-album/cola19.jpg?sfvrsn=6d0f5a9e_0 --- [![soc-fb](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_fb.svg "soc-fb")](https://www.facebook.com/American-Payroll-Associations-Chapter-Relations-877434285724525/) [![soc-in](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_li.svg "soc-in")](http://www.linkedin.com/groups?about=&gid=1051077&trk=anet_ug_grppro) [![soc-tw](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_tw.svg "soc-tw")](https://twitter.com/APAChapters?lang=en) - [Home](https://blogs.payroll.org/chapter-leaders) - [About](https://blogs.payroll.org/about) - [Connect](https://blogs.payroll.org/connect) - [Resources](https://blogs.payroll.org/resources) ![23-PayNewsNow-Horiz-Logo](https://blogs.payroll.org/hs-fs/hubfs/23-PayNewsNow-Horiz-Logo.png?width=1300&name=23-PayNewsNow-Horiz-Logo.png "23-PayNewsNow-Horiz-Logo") [![26 PayrollOrg®RGB-NoTag long](https://blogs.payroll.org/hs-fs/hubfs/26%20PayrollOrg%C2%AERGB-NoTag%20long.jpg?width=1300&name=26%20PayrollOrg%C2%AERGB-NoTag%20long.jpg "26 PayrollOrg®RGB-NoTag long")](https://payroll.org/) ![](https://blogs.payroll.org/hs-fs/hubfs/Jyme.png?width=35&name=Jyme.png) Custom URL No Widget: By [Jyme Mariani, Esq.](https://blogs.payroll.org/pay-news-now/author/jyme-mariani-esq) on Nov 10, 2023 9:46:34 AM # IRS Announces 2024 COLAs for Transportation Fringes, FSA Deferrals The IRS released cost-of-living-adjustments (COLAs) for 2024 reflecting any increases in excludable transportation fringes and the flexible spending arrangement (FSA) deferral limit, among other changes \[[**Rev. Proc. 2023-34**](https://www.payroll.org/docs/default-source/irs-and-ssa-announcements/23m09-COLAs-for-2024.pdf), 11-9-23\].   ### 2024 COLAs for Transportation Fringes, FSA Deferrals For 2024, the amounts that may be excluded from gross income for employer-provided qualified transportation fringe benefits and qualified parking increase to $315 per month ($300 in 2023). For plan years beginning in 2024, the dollar limitation for voluntary employee salary reductions for contributions to health FSAs increases to $3,200 ($3,050 in 2023). For cafeteria plans that permit the carryover of unused amounts, the maximum carryover amount increases to $640 ($610 in 2023). Complete coverage of the announced changes will be in *Payroll Currently* ([**Issue 12**](https://bookshelf.payroll.org/pc2312/1), Vol. 21, 12-1-23).   ### For More Information For more information, see the PAYO Compliance Update, [**IRS Announces 2024 COLAs for Transportation Fringes, FSA Deferrals, Foreign Earned Income Inclusion, and More**](https://payroll.org/compliance/compliance-updates/irs-announces-2024-colas-for-transportation-fringes-fsa-deferrals-foreign-earned-income-exclusion-and-more). Compliance updates are emailed to PayrollOrg members and are also available on the [**Compliance Updates**](https://www.payroll.org/compliance/compliance-updates) webpage. To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out [**Payroll Source Plus**](https://ebiz.americanpayroll.org/ebusiness/ProductCatalog/Product.aspx?ID=6067)! --- *Jyme Mariani, Esq., is Managing Editor of* Payroll Currently *and Senior Manager of Payroll Information Resources for PayrollOrg.* ### Search ![payroll-logo-white](https://blogs.payroll.org/hs-fs/hubfs/payroll-logo-white.png?width=200&name=payroll-logo-white.png "payroll-logo-white") [Privacy Policy](http://www.americanpayroll.org/privacy/)     |     Acceptable Use ©[PayrollOrg](http://payroll.org) [![soc-fb](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_fb.svg "soc-fb")](https://www.facebook.com/PayrollOrg) [![soc-in](https://blogs.payroll.org/hubfs/ct-23-assets/footer-icon_li.svg "soc-in")](https://www.linkedin.com/company/payroll-org/mycompany/) [![Twitter-X-White-Logo-PNG](https://blogs.payroll.org/hs-fs/hubfs/Twitter-X-White-Logo-PNG.png?width=20&height=19&name=Twitter-X-White-Logo-PNG.png)](https://twitter.com/PayNews)