2024 Cost-Of-Living Adjustments For Qualified Retirement Plans
We present a highlights summary of the significant cost-of-living adjustments (COLA) effective for 2024. These adjustments recently announced by the Internal Revenue Service (IRS) and the Social Security Administration (SSA) have a wide-ranging impact, including the savings rate for retirement plans. In general, annual compensation amounts and limits for elective deferrals were increased, while catch-up contribution limits remain unchanged.
|
Code Section
|
2024
|
2023
|
2022
|
|
401(a)(17)/404(l) Annual Compensation
|
$345,000
|
$330,000
|
$305,000
|
|
402(g)(1) Elective Deferrals
|
23,000
|
22,500
|
20,500
|
|
408(k)(2)(C) SEP Minimum Compensation
|
750
|
750
|
650
|
|
408(k)(3)(C) SEP Maximum Compensation
|
345,000
|
330,000
|
305,000
|
|
408(p)(2)(E) SIMPLE Maximum Contributions
|
16,000
|
15,500
|
14,000
|
|
409(o)(1)(C)(ii) ESOP Limits
|
1,380,000
275,000
|
1,330,000
265,000
|
1,230,000
245,000
|
|
414(q)(1)(B) HCE Threshold
|
155,000
|
150,000
|
135,000
|
|
414(v)(2)(B)(i) Catch-up Contributions
|
7,500
|
7,500
|
6,500
|
|
414(v)(2)(B)(ii) Catch-up Contributions
|
3,500
|
3,500
|
3,000
|
|
415(b)(1)(A) DB Limits
|
275,000
|
265,000
|
245,000
|
|
415(c)(1)(A) DC Limits
|
69,000
|
66,000
|
61,000
|
|
416(i)(1)(A)(i) Key Employee
|
220,000
|
215,000
|
200,000
|
|
457(e)(15) Deferral Limits
|
23,000
|
22,500
|
20,500
|
|
1.61-21(f)(5)(i) Control Employee
|
135,000
|
130,000
|
120,000
|
|
1.61-21(f)(5)(iii) Control Employee
|
275,000
|
265,000
|
245,000
|
|
Taxable Wage Base for Social Security
|
168,600
|
160,200
|
147,000
|
