November 6, 2023

IRS Releases Annual Increases to Qualified Retirement Plan Limits for 2024

Proskauer - Employee Benefits & Executive Compensation Blog

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Proskauer - Employee Benefits & Executive Compensation Blog

On November 1st, the IRS released a number of inflation adjustments for 2024, including to certain limits for qualified retirement plans. As expected, this year’s adjustments are more modest than last year’s significant increases. The table below provides an overview of the key adjustments for qualified retirement plans.

Qualified Defined Benefit Plans
	2023	2024	Increase from 2023 to 2024
Annual Maximum Benefit	$265,000	$275,000	$10,000
Qualified Defined Contribution Plans
	2023	2024	Increase from 2023 to 2024
Aggregate Annual Contribution Limit	$66,000	$69,000	$3,000
Annual Pre-Tax/Roth Contribution Limit	$22,500	$23,000	$500
Catch-Up Contribution Limit for Individuals 50+	$7,500	$7,500	—
Other Adjustments for Qualified Plans
	2023	2024	Increase from 2023 to 2024
Annual Participant Compensation Limit	$330,000	$345,000	$15,000
Highly Compensated Employee Threshold	$150,000	$155,000	$5,000
Key Employee Compensation Threshold for Top Heavy Testing	$215,000	$220,000	$5,000

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.