CLIENT ALERT: IRS Announces 2024 Retirement Plan And Other Benefit Limitations

Client Alert

The Internal Revenue Service recently announced the new inflation adjusted dollar limitations for retirement plan contributions and benefits beginning January 1, 2024. Many of the limits have gone up, which will enhance the value of many employee benefit plans. The adjusted limits are listed below.

Limitation 2023 Amount 2024 Amount
Basic Elective Deferral Limitation for 401(k), 403(b) and
457(b) Plans
$22,500 $23,000
Catch-up Contribution Limit for Persons Age 50 and older
in 401(k), 403(b) or SARSEP Plans
$7,500 $7,500
Limitation on Annual Additions to a Defined Contribution
$66,000 $69,000
Limitation on Annual Benefits from a Defined Benefit
$265,000 $275,000
Maximum Annual Compensation taken into account for
determining benefits or contributions to a qualified plan
$330,000 $345,000
Highly Compensated Employee Compensation Threshold3 $150,000 $155,000
IRA/Roth IRA Contribution Limit $6,500 $7,000
Health Savings Accounts:
  • Individual Contribution Limit
  • Family Contribution Limit
  • Catch-up Contributions
Health Flexible Spending Accounts4 $3,050 $3,200

Our Employee Benefits Practice Group can help you to understand how these new limits may affect your plans and whether new benefit structures may be available for you and your companies.

Please contact the Olshan attorney with whom you regularly work or the Practice Group Leader, Stephen Ferszt, if you would like to discuss further or have questions.

This publication is issued by Olshan Frome Wolosky LLP for informational purposes only and does not constitute legal advice or establish an attorney-client relationship. In some jurisdictions, this publication may be considered attorney advertising.
Copyright © 2023 Olshan Frome Wolosky LLP. All Rights Reserved.

1 In no event may annual additions exceed 100% of a participant’s compensation.

2 In no event may a participant’s annual benefit exceed 100% of the participant’s average compensation for the participant’s highest three consecutive years.

3 Generally, an employee is considered “highly compensated” if the employee:
(a) was a five-percent owner of the employer at any time during the current or preceding year; or
(b) received compensation from the employer in the preceding year of more than the applicable dollar limit for that year.

4 This limit applies only to voluntary employee salary reduction (pre-tax) contributions.

CLIENT ALERT: IRS Announces 2024 Retirement Plan And Other Benefit Limitations


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