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The Internal Revenue Service (“IRS”) has announced the following dollar limits applicable to tax-qualified plans for 2024:

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The limit on the maximum amount of elective contributions that a person may make to a 401(k) plan, a 403(b) tax-sheltered annuity, or a 457(b) eligible deferred compensation plan increased from $22,500 to $23,000.

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The limit on “catch-up contributions” to a 401(k) plan, a 403(b) tax-sheltered annuity, or a 457(b) eligible deferred compensation plan for persons age 50 and older is unchanged at $7,500.

The dollar limit on the maximum permissible allocation under 401(k) and other defined contribution plans is increased from $66,000 to $69,000.

The maximum annual benefit under a defined benefit plan is increased from $265,000 to $275,000.

The maximum amount of annual compensation that may be taken into account on behalf of any participant under a qualified plan will go from $330,000 to $345,000.

The dollar amount used to identify “highly compensated employees” is increased from $150,000 to $155,000.

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Additional information regarding benefit plan dollar limits can be obtained in&nbsp;<a href="https://www.irs.gov/pub/irs-drop/n-23-75.pdf">IRS Notice 2023-75</a>.

For additional information, contact <a href="/people/daniel-l-morgan/" id="19323">Dan Morgan</a> or another member of Blank Rome’s <a href="/services-and-industries/benefits-executive-compensation/" id="18515">Benefits &amp; Executive Compensation</a> group.

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©2023 Blank Rome LLP. All rights reserved. Please contact Blank Rome for permission to reprint. Notice: The purpose of this update is to identify select developments that may be of interest to readers. The information contained herein is abridged and summarized from various sources, the accuracy and completeness of which cannot be assured. This update should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.

IRS Announces 2024 Retirement Plan Limits

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IRS Announces 2024 Retirement Plan Limits

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