The IRS announced cost-of-living adjustments for 2024 retirement plan contributions. For 2024, the amounts that individuals will be able to contribute to retirement plans will increase from $22,500 to $23,000. However, the catch-up contribution limit for employees age 50 and over will remain unchanged at $7,500. This chart summarizes the limitations for 2024:
| Contribution Limits | 2024 | 2023 |
| Elective Deferral Limit – 401(k), 403(b) and 457(b) Plans | $23,000 | $22,500 |
| Catch-Up Contribution Limit | $7,500 | $7,500 |
| Elective Deferral Limit – SIMPLE Retirement Plan | $16,000 | $15,500 |
| Catch-Up Contribution Limit – SIMPLE Retirement Plan | $3,500 | $3,500 |
| Contribution Limit – IRA | $7,000 | $6,500 |
| Catch-Up Contribution Limit – IRA | $1,000 | $1,000 |
| Benefits and Compensation | ||
| Defined Contribution Plan Annual Addition Limit | $69,000 | $66,000 |
| Defined Benefit Plan Annual Benefit Limit | $275,000 | $265,000 |
| Annual Compensation Limit | $345,000 | $330,000 |
| Highly Compensated Employee Limit | $155,000 | $150,000 |
| Key Employee (Officer) Compensation Limit | $220,000 | $215,000 |
The Social Security Administration earlier announced that the Social Security Wage Base for 2024 will increase to $168,600.
If you have questions about the new pension plan limitations, please contact Edie Crump (937-449-5530).
