Widespread Retirement Plan Limit Changes for 2024
The IRS released its annual update for the cost-of-living adjustments for 2024. Similar to the adjustments made last year, there are widespread increases for 2024. As you can see from our chart below, almost all IRS limits were affected by this year’s cost-of-living adjustments, with the exception of catch-up contributions.
Now that the updated amounts have been released, plan sponsors should now have all the required information needed to complete their annual notices (see our prior blog post on notices). If you have questions about the changes to the retirement plan limits or annual notices, please reach out to any Bricker Graydon attorney in our Employee Benefits Group.
| 2023 | 2024 | ||||
| ELECTIVE DEFERRAL ANNUAL LIMITS | |||||
| 401(k), 403(b) and SEPs | $22,500 | $23,000 | |||
| 457(b) Plans | $22,500 | $23,000 | |||
| SIMPLE IRAs and 401(k)s | $15,500 | $16,000 | |||
| CATCH-UP CONTRIBUTIONS | |||||
| 401(k), 403(b) and SEPs | $7,500 | $7,500 | |||
| SIMPLE IRAs and 401(k)s | $3,500 | $3,500 | |||
| COMPENSATION LIMIT | $330,000 | $345,000 | |||
| DEFINED BENEFIT PLAN LIMIT | $265,000 | $275,000 | |||
| DEFINED CONTRIBUTION PLAN LIMIT | $66,000 | $69,000 | |||
| HIGHLY COMPENSATED EMPLOYEE | $150,000 | $155,000 | |||
| KEY EMPLOYEE | |||||
| Officers | $215,000 | $220,000 | |||
| 1% Owner | $150,000 | $150,000 | |||
| SOCIAL SECURITY TAXABLE WAGE BASE | $160,200 | $168,600 |
