With the release of IRS Notice 2023-75, we now know the retirement plan limits for Plan Years starting January 1, 2024. The chart below details the changes made to the limits.
| 2024 Retirement Plan Limits | ||
| 2024 | 2023 | |
| Salary Deferral Limit (IRC §402(g)(1)) | $23,000 | $22,500 |
| Catch-up Limits for 401(k), 403(b), 457 plans (IRC §414(v)(2)(B)(i)) | $7,500 | $7,500 |
| DC Annual Addition Limit (IRC §415(c)(1)(A)) | $69,000 | $66,000 |
| HCE Threshold (IRC §414(q)(1)(B)) | $155,000 | $150,000 |
| Max Compensation for Retirement Plans (IRC §401(a)(17)) | $345,000 | $330,000 |
| Key Employee – Officer (IRC §416(i)(1)(A)(i)) | $220,000 | $215,000 |
| Key Employee – 1% Owner | $150,000 | $150,000 |
| Taxable Wage Base for OASDI | $168,600 | $160,200 |
| DB Annual Limit (IRC §415(b)(1)(A)) | $275,000 | $265,000 |
| 457(b) Contribution Limit (IRC §457(e)(15)) | $23,000 | $22,500 |
| SIMPLE 401(k) Limit (IRC §408(p)(2)(E)) | $16,000 | $15,500 |
| SIMPLE 401(k) Catch-up (§IRC 414(v)(2)(B)(ii)) | $3,500 | $3,500 |
| Maximum ESOP Account Balance (IRC §409(o)(1)(C)(ii)) | $1,380,000 | $1,330,000 |
| ESOP 5-year Distribution Period Limit | $275,000 | $265,000 |
| QLAC (Treas. Reg. §1.401(a)(9)-6) | $200,000 | $155,000 |
| IRA Contribution Limit | $7,000 | $6,500 |
This update summarizes aspects of the law and does not constitute legal advice. For legal advice for your situation, you should contact an attorney.
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