IRS Announces Retirement Plan Limits for 2024

IRS Announces Retirement Plan Limits for 2024

The Internal Revenue Service (IRS) announced cost of living adjustments (COLAs) affecting dollar limitations for retirement plans and other retirement-related items for Tax Year 2024.

For the 2024 year there will be an increase in most of the key retirement plan limits. While there was a $500 increase to the deferral limit, the Catch-Up limit did not change. The overall DC contribution limit increased by $3,000 to $69,000. There was also an increase to the Highly Compensated threshold, and the Annual Compensation Limit.

It is important that you ensure your payroll system is updated to reflect these new limits starting January 1, 2024. If you have any questions about these changes, please contact our office.

Contribution/Benefit Limits 2024 2023
Elective Deferrals [401(k), 403(b) & 457 plans] $23,000 $22,500
Catch-Up Contribution $7,500 $7,500
Annual Contribution Limit $69,000 $66,000
Highly Compensated Threshold $155,000 $150,000
Annual Compensation Limit $345,000 $330,000
DB Plan Annual Benefit Limit $275,000 $265,000
Key Employee Compensation $220,000 $215,000
Simple Employee Deferral $16,000 $15,500
Simple Catch-Up Contribution $3,500 $3,500

As published by the Internal Revenue Service.

For full details on the pension plan limitations for 2023 click here.

To download a PDF copy click here.