November 02, 2023

IRS Announces Increased Retirement Plan Limits for 2024

Employee Benefits

5 min read

IRS Announces Increased Retirement Plan Limits for 2024

On November 1, 2023, the Internal Revenue Service (IRS) announced in IRS Notice 2023-75 cost-of-living adjustments to the applicable dollar limits for retirement plans for 2024.

The table below compares the applicable dollar limits for retirement plans for 2024 and 2023.

Employers are encouraged to work with their retirement plan recordkeeper and payroll providers to update these limits for January 1, 2024.

Retirement Plan Limits	2024	2023	Change from 2023
Section 401(k)/403(b)/457(b)(2) Plans maximum elective deferrals	$23,000	$22,500	+$500
Section 401(k) or 403(b) Plans catch-up contribution limit*	$7,500	$7,500	No change
Section 415(c)(1)(A) Defined contribution annual additions limit	$69,000	$66,000	+$3,000
Section 414(q)(1)(B) Highly compensated employee	$155,000	$150,000	+$5,000
Section 416(i)(A)(i) “Key employee” in a top-heavy plan	$220,000	$215,000	+$5,000
Section 401(a)(17) Annual compensation limit	$345,000	$330,000	+$15,000
Section 408(p)(2)(E) SIMPLE 401(k) Plans	$16,000	$15,500	+$500

*For 2024, retirement plan participants age 50 and older may contribute up to $30,500.

For more information on the landmark retirement plan legislation known as “Secure 2.0,” enacted in late 2022, click here, here, and here.

Risk Strategies is here to help. Contact us directly at benefits@risk-strategies.com.

The contents of this article are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.

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