NATP breaks down the 2024 cost-of-living adjustments for retirement plans By: National Association of Tax Professionals
November 20, 2023

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.

Retirement plans
Notice 2023-75
Tax planning
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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.

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