Retirement Plan Limitations for 2024
- Published
- Nov 2, 2023
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As an ongoing service to our clients, EisnerAmper is providing this Alert to keep you abreast of the recent changes affecting employee benefit plans.
The Internal Revenue Service announced on November 1 the cost-of-living adjustments applicable to the dollar limitations for defined contribution and defined benefit plans for the tax year 2024. Several of the limits have changed from 2023, as noted below.
| Code Section | 2024 | 2023 | 2022 |
|---|---|---|---|
| IRAs | |||
| IRA Contribution Limit – 219(b)(5)(A) | $7,000 | $6,500 | $6,500 |
| IRA Catch-Up Contributions – 219(b)(5)(B) | $1,000 | $1,000 | $1,000 |
| SEP | |||
| SEP Minimum Compensation – 408(k)(2)(C) | $750 | $750 | $650 |
| SEP Maximum Compensation – 408(k)(3)(C) | $345,000 | $330,000 | $305,000 |
| 401(k), 403(b), 457, Profit-Sharing Plans, etc. | |||
| Annual Compensation – 401(a)(17)/404(l) | $345,000 | $330,000 | $305,000 |
| Elective Deferrals – 402(g)(1), 457(e)(15) | $23,000 | $22,500 | $20,500 |
| Catch-up Contributions – 414(v)(2)(B)(i) | $7,500 | $7,500 | $6,500 |
| Defined Contribution Limits – 415(c)(1)(A) | $69,000 | $66,000 | $61,000 |
| Other | |||
| HCE Threshold – 414(q)(1)(B) | $155,000 | $150,000 | $135,000 |
| Defined Benefit Annual Limit – 415(b)(1)(A) | $275,000 | $265,000 | $245,000 |
| Key Employee – 416(i)(1)(A)(i) | $220,000 | $215,000 | $200,000 |
| Social Security Wage Base | $168,600 | $160,200 | $147,000 |
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