IRS Announces New Pension Limits for 2024

12 Dec , 2023

As you know, your company sponsors a Qualified Retirement Plan. The Internal Revenue Code provides for dollar limitations on benefits and contributions under qualified retirement plans. Code Section 415 requires the limits to be adjusted annually for cost-of-living increases.

We are very excited to inform you that the Internal Revenue Service has just announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for the 2024 Tax Year. In general, many of the pension plan limitations will change for 2023 because the increase in the cost of living met the statutory thresholds that trigger their adjustment.

They are as follows:

Annual Compensation Limit	$345,000	(was $330,000)
Employee Deferral Limit	$23,000	(was $22,500)
Catch-up Deferral Limit	$7,500	(was $7,500)
Defined Contribution Plan Limit	$69,000	(was $66,000)
Highly Compensated Employee	$155,000	(was $150,000)
Defined Benefit Plan Limit	$275,000	(was $265,000)
Social Security Taxable Wage Base	$168,600	(was $160,200)

➤ Download our Cash Balance Plan

Bio
Latest Posts

Jo-Ann Massanova

President (CPC, QPA, ERPA, CLU, ChFC) at Estate & Pension Advisory Board

Jo-Ann is President and a shareholder with the firm of Estate & Pension Advisory Board in Cherry Hill, New Jersey. A privately owned Third Party Administrator (TPA) in existence for fifty years. The company provides actuarial, administration and consulting services for an array of different types qualified retirement plans sponsored by small to mid size companies.

Latest posts by Jo-Ann Massanova (see all)

IRS Announces New Pension Limits for 2024 - December 12, 2023
IRS Announces New Pension Limits for 2023 - November 19, 2022
IRS Announces New Pension Limits for 2022 - December 20, 2021

2024 Pension Limits, IRS, Pension Limits