The IRS has announced changes to retirement plan limits for 2024
Each year the Internal Revenue Service announces the cost-of-living adjustments applicable for all types of qualified retirement plans and IRAs. The various annual contribution limitations and other important indexes that govern all plans either remain unchanged year-over-year or may rise depending on whether the Consumer Price Index meets a threshold level dictating an increase.
For 2024, highlights include:
- The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased to $23,000, up from $22,500
- The limit on annual contributions to an IRA changed to $7,000 for those under age 50. For those 50 and older, the limit is $8,000.
- The amount individuals can contribute to their SIMPLE retirement accounts is increased to $16,000, up from $15,500.
- The Annual Compensation Limit increased to $345,000, up from $330,000 .
The Retirement Plan Company is pleased to present this table for your convenience. Contact Us for more assistance.
Annual Compensation and Contribution Limits for Qualified Retirement Plans
(Amount is in $)
|401(k) and 403(b) Deferral Limit||23,000||22,500||20,500||19,500||19,500||19,000||18,500||18,000|
|457 Deferral Limit||23,000||22,500||20,500||19,500||19,500||19,000||18,500||18,000|
|401(k), 403(b), 457 Catch-up Contribution Limit||7,500||7,500||6,500||6,500||6,500||6,000||6,000||6,000|
|SIMPLE Deferral Limit||16,000||15,500||14,000||13,500||13,500||13,000||12,500||12,500|
|SIMPLE Catch-up Contribution Limit||3,500||3,500||3,000||3,000||3,000||3,000||3,000||3,000|
|Annual Compensation Limit||345,000||330,000||305,000||290,000||285,000||280,000||275,000||270,000|
|Defined Benefit 415 Limit||275,000||265,000||245,000||230,000||230,000||225,000||220,000||215,000|
|Defined Contribution 415 Limit||69,000||66,000||61,000||58,000||57,000||56,000||55,000||54,000|
|Dollar Limit for HCEs||155,000||150,000||135,000||130,000||130,000||125,000||120,000||120,000|
|Dollar Limit for Key Employee||220,000||215,000||200,000||185,000||185,000||180,000||175,000||175,000|
|Social Security Taxable Wage Base||168,600||160,200||147,000||142,800||137,700||132,900||128,400||127,200|