IRS Announced the 2024 plan limits

Inflation is affecting retirement plan limits again.

Starting in 2024, employees can contribute up to $23,000 into their 401(k), 403(b), most 457 plans or the Thrift Savings Plan for federal employees, up from $22,500 in 2023/

The catch-up contribution limit for employees ages 50 and older who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan will remain at $7,500.

The limit on total employer-plus-employee contributions to defined contribution plans will increase to $69,000 in 2024, up from $66,000 in 2023.

The IRS also announced defined benefit plan limits for 2024. Effective Jan. 1, the maximum annual benefit that may be provided through a defined benefit plan is $275,000, up from $265,000.

Meanwhile, the IRS also raised the limit on annual contributions to an IRA to $7,000, up from $6,500 in 2023.

The IRA catch-up contribution limit for individuals ages 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000, the IRS said.

The Highly Compensated Employee threshold has increased to $155,000 and the Key Employee Definition is now at $220,000, both increases of $5,000.

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