The IRS recently released Notice 2023-75, which provides the inflation-adjusted 2024 dollar limitations on benefits and contributions under qualified retirement plans. The following charts provide details on the 2024 cost of living adjustments and the limitations in effect for 2023.
Retirement plan employee contribution limits
| Retirement Plan | 2023 Limit | 2024 Limit |
|---|---|---|
| 401(k) | $22,500 | $23,000 |
| 403(b) | $22,500 | $23,000 |
| SIMPLE 401(k) | $15,500 | $16,000 |
| SIMPLE IRA/401(k) | $15,500 | $16,000 |
| 457 contributions | $22,500 | $23,000 |
| IRA contributions | $6,500 | $7,000 |
| Catch-up contributions for 401(k), 403(b), most 457 and Thrift Savings Plans | $7,500 | $7,500 |
| IRA catch-up contributions | $1,000 | $1,000 |
| SIMPLE catch-up contribution | $3,500 | $3,500 |
Other Limitations
| Description | 2023 Limit | 2024 Limit |
|---|---|---|
| Maximum contribution to a defined contribution benefit account under §415(c) | $66,000 (plus catch-up) | $69,000 (plus catch-up) |
| Maximum annual benefit for a defined benefit plan | $265,000 | $275,000 |
| Maximum annual compensation to be considered when determining retirement plan benefits or contributions | $330,000 | $345,000 |
| Highly compensated employee threshold | $150,000 | $155,000 |
| Key employee threshold under a top-heavy plan | $215,000 | $220,000 |
| Minimum compensation for simplified employee pensions (SEPs) | $750 | $750 |
IRA income phase-out ranges
| Filing Status/Coverage | 2023 | 2024 |
|---|---|---|
| Single, covered by workplace retirement plan | $73,000 to $83,000 | $77,000 to $87,000 |
| Contributions by MFJ spouse covered by a workplace retirement plan | $116,000 to $136,000 | $123,000 to $143,000 |
| Non-covered contributor with a covered spouse | $218,000 to $228,000 | $230,000 to $240,000 |
| MFS spouse covered by a workplace retirement plan | $0 to $10,000 | $0 to $10,000 |
Roth IRA income phase-out ranges
| Filing Status | 2023 | 2024 |
|---|---|---|
| Single or HOH | $138,000 to $153,000 | $146,000 to $161,000 |
| MFJ | $218,000 to $228,000 | $230,000 to $240,000 |
| MFS | $0 to $10,000 | $0 to $10,000 |
Income limits for the retirement savings contribution credit (Saver’s credit)
| Filing Status | 2023 | 2024 |
|---|---|---|
| Single or MFS | $36,500 | $38,250 |
| MFJ | $73,000 | $76,500 |
| Hoh | $54,750 | $57,375 |
For more information on the limitations that apply to retirement plan contributions and benefits, check out our Handling Retirement Plans for the Small Employer on-demand webinar or our Retirement Plans for Small Businesses self-study.
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Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing. All taxpayer circumstances are different, and NATP recommends contacting research services if you have specific questions about your clients’ tax situations.