The Internal Revenue Service announced the 2024 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other benefits, and the Social Security Administration announced its own cost-of-living adjustments for 2024. Most of the dollar limits, including the elective deferral contribution limit for 401(k), 403(b) and 457(b) plans, the annual compensation limit under 401(a)(17) and the maximum annual contribution limit under Code Section 415(c) will increase from 2023 limits. The dollar limit for catch-up contributions (if age 50 or older) remains the same as the 2023 limit.
RETIREMENT PLAN LIMITS
| 2024 Limits | 2023 Limits | |
| 401(k)/403(b)/457(b) Elective Deferrals | $23,000 | $22,500 |
| Catch-Up Contribution (plans other than SIMPLE plans) | $7,500 | $7,500 |
| SIMPLE Plan Employee Deferrals | $16,000 | $15,500 |
| SIMPLE Plan Catch-Up Contributions | $3,500 | $3,500 |
| Plan Maximum Annual Contribution – Defined Contribution Plans (Section 415(c)) | $69,000 | $66,000 |
| Maximum Annual Benefit – Defined Benefit Plans (Section 415(b)) | $275,000 | $265,000 |
| Compensation Limit under Section 401(a)(17) | $345,000 | $330,000 |
| Highly Compensated Employee Definition under Section 414(q) | $155,000 | $150,000 |
| Key Employees Officer Compensation for Top-Heavy Plans | $220,000 | $215,000 |
| ESOP limit for determining the maximum account balance subject to the 5-year distribution limit | $1,380,000 | $1,330,000 |
| ESOP dollar amount used for determining the lengthening of the 5-year distribution period | $275,000 | $265,000 |
HEALTH SAVINGS ACCOUNT AND HIGH DEDUCTIBLE HEALTH PLAN LIMITS
Earlier this year, the IRS announced the inflation-adjusted amounts for health savings account and high-deductible health plans for 2024. The HSA limit for self-only/family coverage will increase to $4,150 and $8,300, respectively for 2024. The maximum annual out-of-pocket expense limits for high deductible health plans for self-only and family coverage will increase in 2024.
| 2024 Limits | 2023 Limits | |
| HSA Contribution — Annual Contribution Limit | ||
| Self-Only Coverage | $4,150 | $3,850 |
| Family Coverage | $8,300 | $7,750 |
| Catch-Up Contributions (age 55 or older) | $1,000 | $1,000 |
| High Deductible Health Plan – Minimum Annual Deductible | ||
| Self-Only Coverage | $1,600 | $1,500 |
| Family Coverage | $3,200 | $3,000 |
| High Deductible Health Plan – Maximum Out of Pocket Limit | ||
| Self-Only Coverage | $8.050 | $7,500 |
| Family Coverage | $16,100 | $15,000 |
HEALTH FLEXIBLE SPENDING ACCOUNTS
We are waiting for the IRS to release the health flexible spending account contribution rate for 2024.
| 2024 Limit | 2023 Limit | |
| Health FSA Contribution Limit | TBD | $3,050 |
| Carryover Amount | TBD | $610 |
SOCIAL SECURITY WAGES BASE
Social Security Wage Base
| 2024 Limit | 2023 Limit | |
| Social Security (FICA) Wage Base | $168,600 | $160,200 |
