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.