The IRS has announced cost-of-living adjustments that should be noted for retirement planning purposes.
Below is a chart that outlines employee benefit plan limits for 2024:
Plan Limits |
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| RETIREMENT & SOCIAL SECURITY | 2024 Limit | 2023 Limit | 2022 Limit |
| Section 401(k), 403(b), 457(b) Elective Deferrals | $23,000 | $22,500 | $20,500 |
| 401(k) or 403(b) Catch-Up Contributions | $7,500 | $7,500 | $6,500 |
| Section 415 – Defined Contribution Plan Maximum Annual Contributions without Catch-Up | $69,000 | $66,000 | $61,000 |
| Section 415 – Defined Benefit Plan Maximum Annual Benefit | $275,000 | $265,000 | $245,000 |
| Section 414(q)(1)(B) – Highly Compensated Employee – Minimum Compensation (applies to lookback years in indicated year) | $155,000 | $150,000 | $135,000 |
| Section 416 – Key Employee Definition – Officer Compensation | $220,000 | $215,000 | $200,000 |
| Section 416 – Key Employee Definition – 1% Owner Compensation | $150,000 | $150,000 | $150,000 |
| Section 401(a)(17) – Maximum Includible Annual Compensation | $345,000 | $330,000 | $305,000 |
| IRA or Roth IRA Annual Contribution Limit | $7,000 | $6,500 | $6,000 |
| IRA or Roth IRA Annual Catch-Up Contributions | $1,000 | $1,000 | $1,000 |
| SIMPLE Salary Deferral Limit | $16,000 | $15,500 | $14,000 |
| SIMPLE Catch-Up Limit | $3,500 | $3,500 | $3,000 |
Plan administrators should ensure they pass along this new information to their participants, so they have all the required information when planning their deferrals for 2024
