Annual Limits on Qualified Plans for 2024
On November 1, 2023, the Internal Revenue Service (IRS) released Notice 2023-75, which sets forth the 2024 cost-of-living adjustments affecting dollar limits on benefits and contributions for qualified retirement plans. The IRS also announced the health savings account (HSA) and high deductible health plan (HDHP) annual deductible and out-of-pocket expense adjustments earlier this year in Revenue Procedure 2023-23 and the health flexible spending arrangement (Medical FSA) adjustments in Revenue Procedure 2023-34. Finally, the Social Security Administration announced its cost-of-living adjustments for 2024 on October 12, 2023, which includes a change to the taxable wage base.
The following chart summarizes the 2024 limits for benefit plans. The 2023 limits are provided for reference.
|
|
2023 |
2024 |
|
Elective Deferral Limit 401(k), 403(b), 457(b) |
$22,500 |
$23,000 |
|
Catch-up Limit (age 50+) |
$7,500 |
$7,500 |
|
Defined Benefit Limit |
$265,000 |
$275,000 |
|
Defined Contribution Limit |
$66,000 |
$69,000 |
|
Dollar Limit – Highly Compensated Employees |
$150,000 |
$155,000 |
|
Officer – Key Employee |
$215,000 |
$220,000 |
|
Annual Compensation Limit |
$330,000 |
$345,000 |
|
SEP Eligibility Compensation Limit |
$750 |
$750 |
|
SIMPLE Deferral Limit |
$15,500 |
$16,000 |
|
SIMPLE Catch-up Limit (age 50+) |
$3,500 |
$3,500 |
|
Social Security Taxable Wage Base |
$160,200 |
$168,600 |
|
ESOP 5 Year Distribution Extension Account Minimum |
$1,330,000 |
$1,380,000 |
|
Additional Amount for 1-Year Extension |
$265,000 |
$275,000 |
|
HSA (Self/Family) Maximum Annual Contribution |
$3,850/$7,750 |
$4,150/$8,300 |
|
HDHP (Self/Family) Minimum Deductible Limits |
$1,500/$3,000 |
$1,600/$3,200 |
|
Out-of-pocket Expense Annual Maximum |
$7,500/$15,000 |
$8,050/$16,100 |
|
Medical FSA |
$3,050 |
$3,200 |
|
Maximum Medical FSA Carryover to Next Plan Year |
$610 |
$640 |
For more information on the 2024 cost-of-living adjustments, please contact Samuel Butler, Lisa Rippey or the Stinson LLP contact with whom you regularly work.
