Back to News

2024 Cost-of-Living Adjustments

Published on

November 3, 2023

The IRS and Social Security Administration have announced the 2024 cost-of-living adjustments for retirement plans.

Here are some of the more significant limitations affecting employee benefit plans:

  • The maximum amount that may be deferred under 401(k), 403(b) and 457(b) plans, not including catch-up deferrals, under Internal Revenue Code Section 402(g) limit, is increased from $22,500 to $23,000. 
  • The IRC Section 415 maximum annual benefit under a defined benefit plan is increased by $10,000 to $275,000.
  • The IRC Section 415 maximum annual additions under a defined contribution plan will be increased by $3,000 to $69,000, subject to the overall limitation of 100% of compensation.
  • The highly compensated employee threshold dollar limit is increased to $155,000.
  • The maximum amount of compensation that may be considered for benefit purposes under a qualified plan will be increased from the current limit of $330,000 to $345,000.
  • The catch-up deferrals to 401(k), 403(b) and 457 plans remain unchanged at $7,500. Please note that the catch-up deferrals are only available for plan participants who turn 50 at any time during the plan year and who may no longer make deferrals because of plan or regulatory limitations.
  • The Social Security taxable wage base is increased by $8,400 to $168,600, which is more than double the average increase over the prior five-year period.

If you have questions about any of these adjustments, please contact Mark Smith or anyone in the Barley Snyder Employee Benefits Group.


Related News

View More News
News Alert
November 11, 2024

National Labor Relations Board Decision: Employers Discussing the Prospective Impact of Unionization No Longer Get the Benefit of the Doubt (For Now)

On Friday, November 8, 2024, the National Labor Relations Board (“NLRB” or “Board”) overruled a 40-year-old precedent...

Learn More
News Alert
November 7, 2024

2025 Cost-of-Living Adjustments

The IRS and Social Security Administration have announced the 2025 cost-of-living adjustments for retirement plans.  Her...

Learn More
Press Release
November 7, 2024

Barley Snyder Named to Best Law Firms® 2025 Edition 28 Times

For Immediate Release Lancaster, Pa. – Barley Snyder is proud to announce that Best Lawyers® has named the firm to its 202...

Learn More

Get in Touch

Our attorneys, paralegals and staff look forward to hearing from you. Please reach out to let us know how we can help.

Get In Touch
RECOGNIZED IN
Super Lawyers
Best Law Firms US News
Best Lawyers