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11.02.2023 Legal News

Benefit and Contribution Limits for 2024

The Commissioner of Internal Revenue announced the 2024 dollar limitations for benefits and contributions that apply to retirement plans. The Social Security Administration increased the Social Security taxable wage base.  Increases for health savings accounts were announced this summer. The following chart provides the 2024 limits and the similar limits for 2023.

Benefit Limits Under the Internal Revenue Code and Social Security
Description 2023
Compensation Cap under 401(a)(17)$330,000  $345,000 
Elective Deferral Limit under 402(g)(1) for 401(k) plans, SEPs, and 403(b) plans$22,500  $23,000
Applicable Dollar Amount for 457(b) plans$22,500 $23,000
Catch-Up Contributions for Individuals Age 50 and Older$7,500 $7,500
Defined Benefit Maximum Annual Accrual$265,000 $275,000
Defined Contribution Maximum Annual Addition$66,000 $69,000
Highly Compensated Employee Threshold

Key Employee in Top-Heavy Plans Threshold


ESOP threshold for determining maximum account balance subject to 5-year distribution period

Regular Limit
Additional amount to lengthen 5-year period


SEP Compensation Threshold for Participation$750 $750 
SIMPLE IRA Salary Reduction Contribution$15,500 $16,000 
Catch-Up Contributions for SIMPLE IRAs or SIMPLE 401(k) plans$3,500 $3,500 
IRA Maximum Deduction$6,500 $7,000 
Social Security Taxable Wage Base  $160,200 $168,600 
Health Savings Account Maximum Contributions

Family Coverage
Single Coverage