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IRS Announces 2024 Retirement Contribution Limits

November 2 2023

On November 1st, 2023, the IRS announced cost-of-living adjustments, changing dollar limitations for retirement accounts for the tax year 2024. Here are the highlights that employers should be aware of:

 
Plan Limits for Year: 2024 2023 2022
401(k), 403(b), 457 Elective Deferrals $23,000 $22,500 $20,500
401(k), 403(b), 457 Catch-Up Contribution Limit (age 50 or over) $7,500 $7,500 $6,500
Annual Defined Contribution Plan Limit $69,000 $66,000 $61,000
Annual Compensation Limit $345,000 $330,000 $305,000
Highly Compensated Employees $155,000 $150,000 $135,000
Key Employee Officer in a Top-Heavy Plan $220,000 $215,000 $200,000
SIMPLE Employee Deferrals $16,000 $15,500 $14,000
SIMPLE Catch-Up Deferral $3,500 $3,500 $3,000
SEP Minimum Compensation $750 $750 $650
Traditional IRA Contribution Limit $7,000 $6,500 $6,000
Traditional IRA catch-up Contribution Limit (age 50 or over) $1,000 $1,000 $1,000
Social Security Wage Base $168,600 $160,200 $147,000

Looking for the limits that impact employees directly? Check them out here.

For full list of limitations for retirement-related items for tax year 2024, please visit IRS.GOV.

Source: Internal Revenue Service Notice 2023-75, Internal Revenue Service Notice 2023-23.

Please note, annual contribution rates are based on the IRS 2024 retirement plan limitations and are subject to change. This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice.