2024 Cost of Living Adjustments

On November 1, 2023, the Internal Revenue Service (IRS) announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2024.

There are seven significant changes that will take place for 2024: 

•        Annual elective deferrals limits for 401(k), 403(b) and 457 plans will increase from $22,500 to $23,000
•        Annual defined contribution limit will increase from $66,000 to $69,000
•        Defined Benefit maximum benefit limit will increase from $265,000 to $275,000
•        Annual compensation limit will increase from $330,000 to $345,000
•        Highly Compensated Employee limit will increase from $150,000 to $155,000
•        Top Heavy Key Employee limit will increase from $215,000 to $220,000
•        Social Security Wage Base limit will increase from $160,200 to $168,600

           COLA Increases for Dollar Limitations on Benefits and Contributions

For more information about retirement plan limits, please visit https://www.irs.gov/pub/irs-drop/n-23-75.pdf