On November 1, 2023, the Internal Revenue Service (IRS) announced in IRS Notice 2023-75 cost-of-living adjustments to the applicable dollar limits for retirement plans for 2024.
The table below compares the applicable dollar limits for retirement plans for 2024 and 2023.
Employers are encouraged to work with their retirement plan recordkeeper and payroll providers to update these limits for January 1, 2024.
|
Retirement Plan Limits |
2024 |
2023 |
Change from 2023 |
|
Section 401(k)/403(b)/457(b)(2) Plans maximum elective deferrals |
$23,000 |
$22,500 |
+$500 |
|
Section 401(k) or 403(b) Plans catch-up contribution limit* |
$7,500 |
$7,500 |
No change |
|
Section 415(c)(1)(A) Defined contribution annual additions limit |
$69,000 |
$66,000 |
+$3,000 |
|
Section 414(q)(1)(B) Highly compensated employee |
$155,000 |
$150,000 |
+$5,000 |
|
Section 416(i)(A)(i) “Key employee” in a top-heavy plan |
$220,000 |
$215,000 |
+$5,000 |
|
Section 401(a)(17) Annual compensation limit |
$345,000 |
$330,000 |
+$15,000 |
|
Section 408(p)(2)(E) SIMPLE 401(k) Plans |
$16,000 |
$15,500 |
+$500 |
*For 2024, retirement plan participants age 50 and older may contribute up to $30,500.
For more information on the landmark retirement plan legislation known as “Secure 2.0,” enacted in late 2022, click here, here, and here.
Risk Strategies is here to help. Contact us directly at benefits@risk-strategies.com.