2024 IRS Retirement Plan Limits

The IRS has released its 2024 inflation-adjusted limits for qualified retirement plans.

It also announced the maximum annual compensation used for calculating benefits and contributions and for nondiscrimination testing. In addition, the Social Security Administration published its limit on wages subject to Social Security taxes. All of this information is summarized in the charts below.

2024 Limits for Retirement Plans

The annual elective deferral limits have increased for 401(k), 403(b), 457(b), savings incentive match plan for employees (SIMPLE) plans, individual retirement accounts (IRAs) and Roth IRAs. 

In addition, the overall annual limit on employee and employer contributions for defined contribution (DC) plans has increased for 2024, as has the maximum annual benefit that can be paid out by a defined benefit (DB) plan.

401(k), 403(b) and 457(b) elective deferrals$22,500$23,000
IRA/Roth IRA contributions$6,500$7,000
SIMPLE deferrals$15,500$16,000
DC plan annual contribution maximum$66,000$69,000
DB plan annual benefit maximum$265,000$275,000
2024 Catch-up Contributions

In eligible retirement plans, employees age 50 and older can contribute additional amounts, known as catch-up contributions, beyond the limits noted above. The IRS limits for catch-up contributions remain the same for 401(k), 403(b), 457(b), SIMPLE, and IRA/Roth IRA plans. 

401(k), 403(b) and 457(b) plans$7,500$7,500
SIMPLE plans$3,500$3,500
IRA/Roth IRA plans $1,000$1,000
Compensation and Social Security

The IRS sets a limit on the amount of compensation that can be used to calculate benefits and contributions. This amount also applies to general and 401(k) nondiscrimination tests. In addition, the Social Security Administration places a limit on wages subject to Social Security taxes. All of these amounts have increased for 2024.

Highly compensated employees$150,000$155,000
Key employees/officers$215,000$220,000
Maximum amount of compensation for benefit calculations and nondiscrimination testing$330,000$345,000
Social Security wage base$160,200$168,600
For More Information

Share the relevant figures with your employees to keep them informed and in compliance. If you have questions about these limits or how they apply to your retirement plans, reach out to our Human Resources Consulting team to learn more.

This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.

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