On Nov. 1, 2023, the Internal Revenue Service (IRS) announced via Notice 2023-75, the cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2024.
The Details:
A summary of the 2024 pension limitations as compared to 2023 is below:
Plan Maximum Contribution Limits 2023 2024
Section 401(k) Plan or SAR SEP $22,500 $23,000
Section 403(b) Plan $22,500 $23,000
Section 408(p)(2)(E) SIMPLE Plan Contributions $15,500 $16,000
Section 457(e)(15) Limit $22,500 $23,000
Section 415 Limit for:
Defined Contribution Plans
Defined Benefit Plans $66,000 $265,000 $69,000 $275,000
Highly Compensated Employees Section 414(q)(1)(B) $150,000 $155,000
Key Employee Section 416(i)(1)(A)(i) $215,000 $220,000
Includible Compensation –
Section 401(a)(17)
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SEP Compensation
SEP Earnings Threshold $330,000 $330,000 $750 $345,000 $345,000 $750
Limited Governmental Plans (pre 7/1/93) $490,000 $505,000
Section 409 Employee Stock Ownership Plan Subject to 5-Year
Distribution Period
Maximum Balance
Amount Used to Determine the Lengthening of the 5-Year
Period $1,330,000 $265,000 $1,380,000 $275,000
The 2024-dollar limitation under Section 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in Section 401(k)(11) or Section 408(p) for individuals aged 50 or over remains at $7,500.
The 2024-dollar limitation under Section 414(v)(2)(B)(ii) for catch-up contributions to an applicable employer plan described in Section 401(k)(11) or Section 408(p) for individuals aged 50 or over remains at $3,500.
For a copy of Notice 2023-75 please click on the link provided below.
https://www.irs.gov/pub/irs-drop/n-23-75.pdf
Have Questions?
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