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.
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
The 2024 limits for Health & Welfare Benefit Plans:
• Health Care FSA maximum contribution limit $3,200
• Health Care FSA Carryover limit $640
• Transportation Plans: transit and parking allowances $315.
• Adoption Assistance program maximum excludable amount $16,810
• Adoption tax credit is $16,810
HSA limits were released earlier this year. Limits increased except for the catch-up contribution.
IRS Announcement of the Health & Welfare Limits
Please feel free to contact us if you have any questions about any of the new Cost-of-Living Adjustments or Plan Limitations.
TRI-AD and our Associates’ suggestions or recommendations shall not constitute legal advice. No content on our website can be construed as tax or legal advice, and TRI-AD may not be considered your legal counsel or tax advisor. Clients are encouraged to consult with their tax advisor and/or attorney to determine their legal rights, responsibilities, and liabilities. This includes the interpretation of any statute or regulation, federal, state, or local; and/or its application to the clients’ business activities.