---
title: 2024 Cost of Living Adjustments for Qualified Retirement Plans
description: A highlights summary of the significant cost-of-living adjustments (COLA) effective for 2024. In general, annual compensation amounts and limits for elective deferrals were increased, while catch-up contribution limits remain unchanged.
---

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# [2024 Cost of Living Adjustments for Qualified Retirement Plans](https://blog.becpas.com/2024-cost-of-living-adjustments-for-qualified-retirement-plans)

 Written by [Brown Edwards](https://blog.becpas.com/author/brown-edwards) | Apr 23, 2024 12:00:00 PM

# **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 |

 

[View full post](https://blog.becpas.com/2024-cost-of-living-adjustments-for-qualified-retirement-plans)

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