Listed below are the planned IRS (Internal Revenue Service) cost-of-living Adjustments for 2024. This is a preliminary list applicable to most employer-sponsored retirement plans and the wage base for Social Security. The remainder of the health and welfare plan limits for 2024 are expected to be released by the IRS in the near term.
| RETIREMENT PLAN LIMITS | 2023 | Δ | 2024 |
|---|---|---|---|
| Annual compensation limit | $320,000 | ↑ | $330,000 |
| 401(k), 403(b) & 457(b) before-tax contributions | $22,500 | ↑ | $24,000 |
| Catch-up contributions (if age 50 or older) | $7,500 | ↑ | $8,000 |
| Highly compensated employee threshold | $150,000 | ↑ | $160,000 |
| Key employee officer compensation threshold | $215,000 | ↑ | $225,000 |
| Defined benefit plan annual benefit and accrual limit | $265,000 | ↑ | $275,000 |
| Defined contribution plan annual contribution limit | $66,000 | ↑ | $68,000 |
| Employee stock ownership plan (ESOP) limit for determining the lengthening of the general five-year distribution period |
$265,000 | ↑ | $275,000 |
| ESOP limit for determining the maximum account balance subject to the general five-year distribution period |
$1,330,000 | ↑ | $1,395,000 |
| SOCIAL SECURITY WAGE BASE | 2023 | Δ | 2024 |
| Social Security Maximum Taxable Earnings | $160,200 | ↑ | $165,000 |
