Increased Limits for Tax-Advantaged Accounts

Health Savings Accounts (HSAs)

In 2024, you’ll be able to set aside even more money if you have an HSA. The amounts you can contribute tax-free are increasing from $3,850 to $4,150 (for individual coverage) and from $7,750 to $8,300 (for family coverage). As a reminder, you can save on taxes in three ways with an HSA—contributions, withdrawals for qualified medical expenses, and earnings are not taxed. You can use your HSA to pay for current health care expenses or to save for eligible expenses anytime in the future.

Remember: Due to IRS rules, you cannot participate in the Health Care FSA if you elect an HDHP with an HSA. However, you can participate in a Limited Purpose FSA (LPFSA) offered exclusively for HDHP participants. The Limited Purpose FSA can be used only for eligible dental and vision expenses. If you’re enrolling in the HDHP and currently participate in the Health Care FSA, you can roll over a minimum of $30, up to $610 of your unused balance at year-end to your 2024 Limited Purpose FSA.

Flexible Spending Accounts (FSAs)

The amount you can save in a Health Care Flexible Spending Account (FSA), Limited Purpose FSA, or Dependent Care FSA may increase too. Once announced by the IRS, the new limits will be shared.

Health Care FSA

You may contribute up to $3,050 annually to the Health Care FSA, then use those tax-free dollars during the year to pay for eligible health care expenses, including copays, deductibles, prescription drugs, over-the-counter medications, and more.

If you enroll in the Health Care FSA, you’ll automatically receive a WEX debit card to use when paying for expenses.

If you currently participate in the Health Care FSA, up to $610 (minimum $30) of your remaining 2023 account balance will automatically roll over to your 2024 Health Care or Limited Purpose FSA with WEX. The rollover amount will be deposited into your FSA before May 30 (after the April 30 deadline for 2023 claims). Any remaining funds over $610 in your Health Care FSA, as well as any remaining Dependent Care FSA balance, will be forfeited. Keep in mind: If you have unsubstantiated debit card claims for 2023, your card will not be activated for 2024. Log in to your WEX account to check your balance and to see if you have any messages requiring action on your part.

Dependent Care FSA

The Dependent Care FSA allows you to use tax-free dollars to reimburse yourself for eligible dependent care expenses. Each year, you can contribute up to $5,000 ($2,500 if you are married and file taxes separately).

Eligible expenses include services like day care facilities, care provided in your home, or a summer day camp. Medical and educational services, or overnight camps for dependents are not eligible expenses for this FSA.

Any unused money in your Dependent Care FSA at the end of the year is forfeited. You can’t transfer money between FSAs.

Limited Purpose FSA

If you are enrolled in the High Deductible Health Plan (HDHP) along with the Health Savings Account (HSA), you may participate in a Limited Purpose Flexible Spending Account (FSA) to pay for dental and vision care with pre-tax dollars. It’s important to note that you cannot participate in both a HSA and a general purpose Health Care FSA. You may use your Health Savings Account funds to pay for regular medical expenses. Consider participating in both the HSA and Limited Purpose FSA to maximize your savings and tax benefits.

Expenses eligible for reimbursement through a Limited Purpose FSA include:

  • Dental: cleanings, coinsurance, copays, crowns, deductibles, dental treatment, dentures, denture adhesives and cleaners, fillings and orthodontics.
  • Vision: contact lenses, contact solutions and cleaning products, eye drops, eye exams, prescription glasses and sunglasses, refractions, vision correction procedures (e.g., Lasik) and vision screenings.

Commuter Benefits

The pretax savings limits for commuter benefits may increase next year. Once announced by the IRS, the new limits will be shared. The current monthly pretax spending limit for non-JHU parking is $300 per month. Additionally, the maximum for your and JHU’s combined contributions to mass transit is $300 per month.

Commuter Assistance Program

JHU’s commuter assistance program allows you to have pretax deductions taken from your pay to cover eligible expenses associated with your commute to work, such as public transportation and non-JHU parking. You may elect a transit account, parking account, or both.

You elect a contribution amount to help cover monthly commuting expenses, but if your commuting needs change, you can make changes to your elections every month. New elections take effect the month after they are submitted and are managed by WEX, our commuter assistance program administrator.

For 2024 you’ll continue to make your monthly commuter benefit elections in the JHU Benefits & Worklife myChoices enrollment site.

Mass-Transit Subsidy

In addition to any pretax money you set aside for commuting expenses, JHU provides a subsidy for eligible employees who work in Maryland and Washington, D.C., to help lessen the cost of commuting, support the University’s sustainability initiatives, and encourage vital in-person interactions. Subsidy amounts are determined by an eligible employee’s work location (Maryland or D.C.), the employee’s annual JHU gross salary, and the number of days the employee works on campus or on-site.

Based also on regional differences in commuting costs, eligible employees who work in Maryland can receive up to $60 per month, and eligible employees who work in Washington, D.C., can receive up to $150 per month.

If you’re eligible, you will have the option to select the JHU subsidy and/or elect your own pretax contribution. You do not need to make employee contributions to your commuter assistance account to receive the JHU-paid subsidy.

Employer funds will be added to your account the first pay of each month. Unused funds will rollover month to month and year to year.

If you already have a WEX debit card for your Health Care FSA, simply use the card you already have for your transit or parking expenses. Otherwise, check your mail for your new WEX debit card. You can also request reimbursement from WEX (online or app) if you pay out of pocket for any of your transit costs.