fbpx

< Back to Thought Leadership

2024 Retirement Plan Limits

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.

New Staff Members from Detroit, Michigan Office smile in outdoor group photo | Blue & Co., LLC Announces New Market Expansion with Mellen, Smith, and Pivoz | Detroit, MI | Detroit, Michigan

Blue & Co., LLC Announces Expansion with Mellen, Smith, and Pivoz

CARMEL, Ind. (November 1, 2024) – Blue & Co., LLC, a top-60 accounting and advisory firm based in Carmel, IN is expanding into Detroit, MI. Effective November 1, 2024, Mellen, […]

Learn More

6 Tips to Help Prepare for 2025 Tax Season

The end of 2024 is quickly approaching, and business owners are once again scrambling to put their companies in the best tax position and minimize tax surprises. The question we […]

Learn More

Section 1557 Nondiscrimination Rule: November 2nd Deadline

The Department of Health and Human Services (HHS) released the Nondiscrimination in Health Programs and Activities final ruling that speaks on Section 1557 of the Affordable Care Act. This ruling […]

Learn More