With a new year right around the corner, the IRS has NOT yet released the 2024 contribution and benefit limits for retirement plans. Let’s look at the plans and the potential limit changes from 2023 to 2024 below:
401(k), 403(b), & 457 maximum annual elective deferral limit
2023 - $22,500
2024 - $23,000
401(k), 403(b), & 457 plans catch-up contribution limit for those age 50 and over
2023 - $7,500
2024 - $7,500
Defined contribution plan annual limit
2023 - Lesser of $66,000 and 100% of compensation
2024 - Lesser of $68,000 and 100% of compensation
Traditional IRA contribution limit
2023 - Lesser of $6,500 and 100% of compensation
2024 - Lesser of $7,000 and 100% of compensation
Traditional IRA catch-up contribution limit for those age 50 and over
2023 - $1,000
2024 - $1,000
Roth IRA contribution limit (income and phase out limits apply depending on tax filing status)
2023 - Lesser of $6,500 and 100% of compensation
2024 - Lesser of $7,000 and 100% of compensation
Roth IRA catch-up contribution limit for those age 50 and over (income and phase out limits apply depending on tax filing status)
2023 - $1,000
2024 - $1,000
SIMPLE maximum annual elective deferral limit
2023 - $15,500
2024 - $16,000
SIMPLE 401(k) or SIMPLE IRA catch-up contribution limit for those age 50 and over
2023 - $3,500
2024 - $3,500
Defined Benefit plan annual limit under section 415
2023 - $265,000
2024 - $275,000
Income subject to Social Security tax
2023 - $160,200
2024 - $168,600
Highly Compensated Employee
2023 - $150,000
2024 - $155,000
Key Employee/Officer in a top-heavy plan
2023 - $215,000
2024 - $220,000
Annual allowable compensation limit for deduction, benefit, and contribution purposes
2023 - $330,000
2024 - $340,000
Lastly, there are some changes to catch-up contributions with the passage of the SECURE 2.0 Act (Roth options and special catch-up contributions amounts for those age 60-63). You’re welcome!
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