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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