It’s that time of year once again when the U.S. Internal Revenue Service has announced its 2024 limitations on retirement plans for the 2024 tax year.
The 401(k) retirement maximum contribution limit has been raised from $22,500 to $23,000 for elective deferrals in 2024, with the maximum contribution increasing from $66,000 to $69,000 for all sources (employee and employer). Human resources and payroll should update their systems and employee communications, as appropriate, reflecting changes effective January 1, 2024.
The IRS has also announced the Individual Retirement Account (IRA) limits effective January 1, 2024. The IRA retirement annual contribution limit for 2024 increases from $6,500 to $7,000. If you are over 50, the annual catch-up contribution not subject to annual cost-of-living adjustment is $1,000. For additional information about retirement plans as a component of total compensation, please visit ERI.
*If age 50+ by year-end
Additional information and technical guidance may be found in the IRS source documents below:
IRS Announces 401(k) Limit Increases to $23,000 and IRA Limit Rises to $7,000
IRS Notice 23-75
