iThe Internal Revenue Service (“IRS”) has announced the following dollar limits applicable to tax-qualified plans for 2024:
- The limit on the maximum amount of elective contributions that a person may make to a 401(k) plan, a 403(b) tax-sheltered annuity, or a 457(b) eligible deferred compensation plan increased from $22,500 to $23,000.
- The limit on “catch-up contributions” to a 401(k) plan, a 403(b) tax-sheltered annuity, or a 457(b) eligible deferred compensation plan for persons age 50 and older is unchanged at $7,500.
- The dollar limit on the maximum permissible allocation under 401(k) and other defined contribution plans is increased from $66,000 to $69,000.
- The maximum annual benefit under a defined benefit plan is increased from $265,000 to $275,000.
- The maximum amount of annual compensation that may be taken into account on behalf of any participant under a qualified plan will go from $330,000 to $345,000.
- The dollar amount used to identify “highly compensated employees” is increased from $150,000 to $155,000.
Additional information regarding benefit plan dollar limits can be obtained in IRS Notice 2023-75.
