The IRS has announced changes to retirement plan limits for 2024
Each year the Internal Revenue Service announces the cost-of-living adjustments applicable for all types of qualified retirement plans and IRAs. The various annual contribution limitations and other important indexes that govern all plans either remain unchanged year-over-year or may rise depending on whether the Consumer Price Index meets a threshold level dictating an increase.
For 2024, highlights include:
- The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased to $23,000, up from $22,500
- The limit on annual contributions to an IRA changed to $7,000 for those under age 50. For those 50 and older, the limit is $8,000.
- The amount individuals can contribute to their SIMPLE retirement accounts is increased to $16,000, up from $15,500.
- The Annual Compensation Limit increased to $345,000, up from $330,000 .
The Retirement Plan Company is pleased to present this table for your convenience. Contact Us for more assistance.
Annual Compensation and Contribution Limits for Qualified Retirement Plans
(Amount is in $)
| 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
| 401(k) and 403(b) Deferral Limit | 23,000 | 22,500 | 20,500 | 19,500 | 19,500 | 19,000 | 18,500 | 18,000 |
| 457 Deferral Limit | 23,000 | 22,500 | 20,500 | 19,500 | 19,500 | 19,000 | 18,500 | 18,000 |
| 401(k), 403(b), 457 Catch-up Contribution Limit | 7,500 | 7,500 | 6,500 | 6,500 | 6,500 | 6,000 | 6,000 | 6,000 |
| SIMPLE Deferral Limit | 16,000 | 15,500 | 14,000 | 13,500 | 13,500 | 13,000 | 12,500 | 12,500 |
| SIMPLE Catch-up Contribution Limit | 3,500 | 3,500 | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 |
| Annual Compensation Limit | 345,000 | 330,000 | 305,000 | 290,000 | 285,000 | 280,000 | 275,000 | 270,000 |
| Defined Benefit 415 Limit | 275,000 | 265,000 | 245,000 | 230,000 | 230,000 | 225,000 | 220,000 | 215,000 |
| Defined Contribution 415 Limit | 69,000 | 66,000 | 61,000 | 58,000 | 57,000 | 56,000 | 55,000 | 54,000 |
| Dollar Limit for HCEs | 155,000 | 150,000 | 135,000 | 130,000 | 130,000 | 125,000 | 120,000 | 120,000 |
| Dollar Limit for Key Employee | 220,000 | 215,000 | 200,000 | 185,000 | 185,000 | 180,000 | 175,000 | 175,000 |
| Social Security Taxable Wage Base | 168,600 | 160,200 | 147,000 | 142,800 | 137,700 | 132,900 | 128,400 | 127,200 |