By Holly Fields, CPA, Senior Manager at Blue & Co.

For 2024, the Internal Revenue Service (IRS) increased plan limitations to reflect cost of living adjustments. Below are some of these limits for 2024:

• Elective deferrals to 401(k), 403(b) and most 457 plans increased from $22,500 to $23,000
• The annual compensation limit increased from $330,000 to $345,000
• The definition of highly compensated employee increased from $150,000 to $155,000
• The defined contribution limit increased from $66,000 to $69,000
• The defined benefit limit increased from $265,000 to $275,000
• The limit on salary deferrals to a SIMPLE retirement plan increased from $15,500 to $16,000 (plus $3,500 catch-up contributions for individuals over age 50)
• Annual contributions to an IRA increased from $6,500 to $7,000 (plus $1,000 catch-up contributions for individuals over age 50)

The below limitations remained unchanged from 2023:

• The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b) and most 457 plans remains at $7,500

See all of the updated retirement plan limits on our website at: www.bluebenefitsonline.com/irs-limits

Did You Know?

• Retirement can last for 30 years or more
• You might need up to 80 percent of your current annual income to retire comfortably
• The average monthly benefit paid by the Social Security Administration is approximately $1,700 (per www.ssa.gov)

Retirement plans can provide significant benefits to not-for-profit organizations and their employees. Some of these benefits include:

• Attracting and retention of better employees
• Helping employees save for their future
• Employee contributions can reduce taxable income
• Employee contributions are easy to make through payroll deductions

There are various retirement plans available to offer such benefits. If you would like to find out more about establishing a plan or would like us to help evaluate whether your current plan maximizes benefits for your employees, please contact your local Blue & Co. advisor.