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IRS Announces 2024 Dollar Limitations for Retirement Plans

    Client Alerts
  • November 03, 2023

The IRS has announced the 2024 annual dollar limitations for retirement plans based on the applicable cost-of-living adjustment guidelines, with increases in many of the limits. The annual limit for elective deferrals to 401(k) plans and 403(b) plans will increase from $22,500 for 2023 to $23,000 for 2024, while the annual limit for catch-up contributions for individuals age 50 or over remains unchanged at $7,500 for 2024. The Social Security Administration also recently announced that the Social Security wage base will increase from $160,200 for 2023 to $168,600 for 2024.

Listed below are key limits applicable for 2024 and 2023.

Limit 2024 2023
Annual Compensation Limit (also known as 401(a)(17) limit) $345,000 $330,000
Elective Deferrals (401(k) plans, 403(b) plans) $23,000 $22,500
Catch-up Contributions (plans other than SIMPLE plans) $7,500 $7,500
Defined Contribution Plan 415 Limit $69,000 $66,000
Defined Benefit Plan 415 Limit $275,000 $265,000
Highly Compensated Employee $155,000 $150,000
SIMPLE Plan Limit $16,000 $15,500
SIMPLE Catch-up Contributions $3,500 $3,500
Social Security Wage Base $168,600 $160,200

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