IRS Releases 2024 Cost-of-Living Adjustments – Partial Update

Click here for printable Retirement and H&W COLAs for 2024

The Internal Revenue Service released several Cost-of-Living Adjustments (COLAs) for 2024. As anticipated, many of the limits were increased.

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Some of the most notable 2024 retirement and pension plan limitations are:

• 401(k) / 403(b) / 457 Contributions – increased to $23,000.
• 401(k) / 403(b) / 457 Catch-up Contributions – stayed at $7,500.
• Compensation Limit – increased to $345,000.
• Defined Contribution Maximum Annual Contribution Limit – increased to $69,000.
• Defined Benefit Maximum Annual Benefit Limit – increased to $275,000.
• Highly Compensated Employees’ Compensation Limit – increased to $155,000.
• Key Employee Officer Compensation Limit – increased to $220,000.

IRS Announcement of Retirement Plan Limits

We are awaiting the IRS release of most of the 2024 limits for Health & Welfare Benefit Plans.

  • Health Care FSA maximum contribution limit TBD
  • Health Care FSA Carryover limit TBD
  • Transportation Plans: transit and parking allowances TBD.
  • Adoption Assistance program maximum excludable amount TBD
  • Adoption tax credit is TBD
  • HSA limits were released earlier this year. Limits increased except for the catch-up contribution.

Please feel free to contact us if you have any questions about any of the new Cost-of-Living Adjustments or Plan Limitations.

 

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