The IRS recently released the 2024 Cost-of-Living Adjustments (COLA) for contribution and compensation limits. Here are the highlights, effective January 1, 2024:
2024 COLA Retirement Plan Highlights
The elective deferral limit increases from $22,500 to $23,000.
The limit for catch-up contributions remains at $7,500.
The annual compensation limit for benefits and contributions increases from $330,000 to $345,000.
The annual contribution limit, including both employee deferrals and employer contributions, increases from $66,000 to $69,000.
The dollar limitation for ‘highly compensated employees’ increases from $150,000 to $155,000.
For defined benefit plans, the limitation for annual benefits increases from $265,00 to $275,000.
For questions about employee benefits and compensation, reach out to one of our attorneys.