The IRS recently announced the following cost-of-living adjusted limits for qualified retirement plans in 2024:
- Annual compensation limit used in calculating a participant’s benefit accruals: increased to $345,000.
- Elective deferrals to Code Section 401(k) and 403(b) plans: increased to $23,000.
- Annual additions to a defined contribution plan: increased to $69,000.
- Catch-up contributions for employees aged 50 and over to Code Section 401(k) and 403(b) plans: remains unchanged at $7,500.
- Annual benefit limit for a defined benefit plan: increased to $275,000.
- Compensation dollar limit for defining a “key employee” in a top heavy plan: increased to $220,000.
- Compensation dollar limit for defining a “highly compensated employee”: increased to $155,000.
The above and other 2024 plan limits are available in Notice 2023-75.