2024 Cost of Living Adjustments for Qualified Retirement Plans
Published by
Brown Edwards
on
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 |
Contact Us