New Year, New Limits

The contribution limit has increased from $22,500 to $23,000 for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan.

The catch-up contribution limits, for individuals aged 50 and older, will remain at $7,500 for 401(k), 403(b), most 457 plans and the Thrift Savings Plan. This means that in 2024, individuals 50 and older can contribute up to $30,500 towards their 401(k), 403(b), most 457 plans and the Thrift Savings Plan.

For individuals participating in a SIMPLE IRA, the contribution limit is $16,000 up from $15,500 with a catch-up contribution of $3,500 for employees aged 50 and older.

The limitation that defines a Highly Compensated Employee (HCE) in 2024 is  $155,000 up from $150,000. 

A few more key changes to note as we approach 2024 is the annual compensation increase from $330,000 to $345,000, annual defined contribution (DC) limit increase from $66,000 to $69,000 and the annual defined benefit (DB) contribution limit increase from $265,000 to $275,000.

For a visual outline of the 2024 contribution limits, click here.