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IRS Releases New Retirement Plan Limits

21 Nov


Update Applicable to:

All employers

What happened?

The Internal Revenue Service (IRS) announced on November 1, 2023, that the amount individuals can contribute to their 401(k) plans in 2024 has increased. This is effective January 1, 2024.

What are the details?

According to the notice given by the IRS:

  • 401(k)/403b/457 limits increased by $500, from $22,500 in 2023 to $23,000 in 2024
  • Individual Retirement Account (IRA) limits increased by $500 from $6,500 to $7,000
  • Catch-up amounts stayed the same ($7,500 for 401k/403b/457, $1,000 for IRA)
  • For the Savings Incentive Match Plan for Employees (SIMPLE), the amount individuals can contribute to their SIMPLE retirement accounts has increased to $16,000, from $15,500.
  • For defined benefit plans, the limit on the annual benefit under this type of plan will increase to $275,000, from $265,000 in 2023.

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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