On November 1, 2023, the Internal Revenue Service announced the cost-of-living adjustments for the various qualified retirement plan limits.  Almost all of the limits shown below have increased from last year.
 
Qualified Plan Limit Cost-of-Living Adjustments
401(k) and 403(b) elective deferral limit

2023 – $22,500

2024 – $23,000

$200,000 compensation limit

2023 – $330,000

2024 – $345,000

$160,000 defined benefit limit

2023 – $265,000

2024 – $275,000

$40,000 defined contribution limit

2023 – $66,000

2024 – $69,000

$80,000 definition of highly compensated employee

2023 – $150,000

2024 – $155, 000

SIMPLE IRA deferral limit

2023 – $15,500

2024 – $16,000

Code Section 457 deferred compensation plan deferral limit

2023 – $22,500

2024 – $23,000

Code Section 414(v) catch-up contribution limit for employee deferrals

2023 – $7,500

2024 – $7,500

All of the above are plan year limits (i.e., for the plan year which begins in 2024), with the exception of the Code Section 401(k) and Code Section 403(b) elective deferral limit, which is a calendar year limitation.

In addition, the Department of Health and Human Services has set the maximum taxable wages for the OASDI portion of the social security tax at $168,600 for 2024, which is an increase from the 2023 limit of $160,200.

This document provides information of a general nature regarding legislative or other legal developments, and is based on the state of the law at the time of the original publication of this article. None of the information contained herein is intended as legal advice or opinion relative to specific matters, facts, situations, or issues, and additional facts and information or future developments may affect the subjects addressed. You should not act upon the information in this document without discussing your specific situation with legal counsel.

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