Last updated on November 17th, 2023
2024 limits for certain employer sponsored retirement and welfare plans, as well as the Social Security Wage Base, were released earlier this month.
Payroll and plan administration systems should be updated to reflect the new limits. In addition, plan sponsors should communicate the 2024 limits to employees in summary plan descriptions and other plan communications (i.e., enrollment).
RETIREMENT PLAN LIMITS FOR 2024
Annual compensation limit: $345,000
Highly compensated threshold: $155,000
Key employee compensation threshold: $220,000
401(k), 403(b), most 457s and Thrift Savings Plan before-tax contributions: $23,000
401(k), 403(b), most 457s and Thrift Savings Plan catch-up contributions for age 50 and over: $7,500
Defined contribution plan annual contribution limit: $69,000
Defined benefit annual benefit and accrual limit: $275,000
IRA annual contributions: $7,000
IRA catch-up contributions for age 50 and over: $1,000
SIMPLE contribution limit: $16,000
SIMPLE catch-up contributions limit: $3,500
ESOP limit for lengthening of general five-year distribution period: $275,000
ESOP limit for maximum account balance subject to general five-year distribution period: $1,380,000
HEALTH & WELFARE PLAN LIMITS FOR 2024
High Deductible Health Plan (HDHP) and Health Savings Accounts (HSAs):
- HDHP maximum out-of-pocket limit self-only/family coverage: $8,050/$16,100
- HDHP minimum annual deductible self-only/family coverage: $1,600/$3,200
- HSA annual contribution limit for self-only/family coverage: $4,150/$8,300
- HSA catch-up contributions for age 55 and over: $1,000
FLEXIBLE SPENDING ACCOUNT LIMITS FOR 2024: Final numbers not available yet
- Healthcare contribution
- Healthcare carryover
- Dependent care contribution
SOCIAL SECURITY
Taxable Wage Base: $168,600
For more details refer to IRS.gov or Notice 2023-75. If you need to free up time to focus on benefits compliance, you can count on RBT CPAs to handle all of your accounting, audit, and tax needs. To learn more, give us a call today.
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Please Note: RBT CPAs is an accounting, audit, tax, and business advisory firm. We are not a law firm and the information provided should not be construed as advice. As always, if you need legal counsel, it’s in your best interest to contact a law firm.