Mary Beth’s Corner

New Year, New Limits

The IRS has published the 2024 contribution limits reflecting cost-of-living adjustments from the past year. Read below for a brief overview highlighting some of the key increases in limitations.

Increased Limitations To See in 2024

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.

Need More Information?

For more details regarding these and other retirement-related cost-of-living adjustments for 2024 visit the IRS website or contact your retirement plan administrator today.



Looking For A Topic We Haven’t Covered? Let Us Know!

Ask Our Experts

Your retirement plan questions answered, in plain English, by an expert. Use the form below to ask our retirement plan experts your question.