FLEX News & Compliance


Compliance - IRS Publications

Compliance Notifications

Earned Income Tax Credit

By participating in a cafeteria plan, the participant will be lowering their income for the Earned Income Tax Credit (EITC). Check the new limits in IRS Publication 596 "Earned Income Credit" and for more information about this tax credit.

Social Security and Medicare Wage Base

For 2024, the Social Security wage base increased to $168,600 - up from $160,200 in 2023. The Social Security rate of 6.2% is applied to wages up to the maximum taxable amount for the year; the Medicare portion of 1.45% applies to all wages - unchanged from 2023.

401(k) Plans

In 2024, the maximum for elective deferrals is $23,000 for employee contributions, and $69,000 for the combined employee and employer contributions. The catch-up contribution for those 50 or older increased to $7,500, raising your employee contribution limit to $30,500, for your 401(k) plan.

IRS Long-Term Care Maximum

2023 2024
For a qualified long-term care insurance policy, the maximum non-taxable daily amount. $420/day $410/day

IRS Publications/Notices