| | Retirement Planning Key Numbers
Certain retirement plan and IRA limits are indexed for
inflation each year, and 2024 saw increases in many figures. Some of the key numbers are
listed below, with the corresponding limit for 2023. (The source for the 2024
numbers is IRS Notice 2023-75.)
|
Elective deferral limits
| 2023 | 2024 |
|---|
| 401(k) plans, 403(b) plans, 457(b) plans, and
SAR-SEPs1 (includes Roth contributions) | Lesser of $22,500 or 100% of participant's compensation
($30,000 if age 50 or older)2 | Lesser of $23,000 or 100% of participant's compensation
($30,500 if age 50 or older)2 | | SIMPLE 401(k) plans and SIMPLE IRA plans1 | Lesser of $15,500 or 100% of participant's compensation
($19,000 if age 50 or older) | Lesser of $16,000 or 100% of participant's compensation
($19,500 if age 50 or older) |
|
IRA contribution limits
| 2023 | 2024 |
|---|
| Traditional and Roth IRAs
| Lesser of $6,500 or 100% of earned income ($7,500 if age 50 or
older)
| Lesser of $7,000 or 100% of earned income ($8,000 if age 50 or
older) |
|
Defined benefit plan annual benefit limits
| 2023 | 2024 |
|---|
| Annual benefit limit per participant
| Lesser of $265,000 or 100% of average compensation for highest
three consecutive years
| Lesser of $275,000 or 100% of average compensation for highest
three consecutive years
|
|
Defined contribution plan limits [qualified plans,
403(b) plans, and SEP plans] | 2023 | 2024 |
|---|
| Annual addition limit per participant (employer contributions;
employee pre-tax, after-tax, and Roth contributions; and forfeitures)
| Lesser of $66,000 or 100% (25% for SEP) of participant's
compensation | Lesser of $69,000 or 100% (25% for SEP) of participant's
compensation
|
1 Must aggregate employee deferrals to all
401(k), 403(b), SAR-SEP, and SIMPLE plans of all employers; 457(b)
contributions are not aggregated. For SAR-SEPs, the percentage limit is 25% of
compensation reduced by elective deferrals (effectively a 20% maximum
contribution).
2 Special catch-up limits may also apply to
403(b) and 457(b) plan participants.
| Retirement plan compensation limits | 2023 | 2024 |
|---|
| Maximum compensation per participant that can be used to
calculate tax-deductible employer contribution (qualified plans/SEPs)
| $330,000
| $345,000
| Compensation threshold used to determine a highly
compensated employee
| $150,000 (when 2023 is the look-back year)
| $155,000 (when 2024 is the look-back year)
| Compensation threshold used to determine a key
employee in a top-heavy plan
| $1 for more-than-5% owners
$215,000 for officers
$150,000 for more-than-1% owners
| $1 for more-than-5% owners
$220,000 for officers
$150,000 for more-than-1% owners
| Compensation threshold used to determine a qualifying
employee under a SIMPLE plan
| $5,000
| $5,000
| Compensation threshold used to determine a qualifying
employee under a SEP plan
| $750
| $750
|
| Income phase-out range for determining deductibility of
traditional IRA contributions for taxpayers:
| 2023 | 2024 |
|---|
1. Covered by an employer-sponsored plan and filing
as:
|
|
| Single/Head of household
| $73,000 - $83,000 |
$77,000 - $87,000 | Married filing jointly
| $116,000
- $136,000
| $123,000 - $143,000 | Married filing separately
| $0 - $10,000
| $0 - $10,000
| 2. Not covered by an employer-sponsored retirement
plan, but filing joint return with a spouse who is covered by a plan
| $218,000 - $228,000
|
$230,000 - $240,000 |
| Income phase-out range for determining ability to fund a Roth
IRA for taxpayers filing as: | 2023 | 2024 |
|---|
| Single/Head of household
| $138,000 - $153,000
|
$146,000 - $161,000 | Married filing jointly
| $218,000 - $228,000
|
$230,000 - $240,000 | Married filing separately
| $0 - $10,000
| $0 - $10,000
|
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