On November 1, 2023, the IRS announced inflation adjusted amounts for 2024 retirement plans. Contribution limits to 401(k), 403(b) and 457 Plans are receiving an increase for 2024. Below is an outline of the 2024 contribution limits for retirement plans effective January 1, 2024.
2024 Contribution Limits for Retirement Plans
401(k), 403(b), 457 Plans |
2023 |
2024 |
| Elective Deferral Limit | $22,500 | $23,000 |
| Catch-up Contribution Limit (age 50 and over) | $7,500 | $7,500 |
| Defined Contribution Plan Annual Contribution Limit | $66,000 | $69,000 |
IRAs |
2023 |
2024 |
| IRA Contribution Limit | $6,500 | $7,000 |
| IRA Catch-up Contribution Limit (age 50 and over) | $1,000 | $1,000 |
Additional Changes to Retirement Plans
The limitation used in the definition of highly compensated employees for 2024 will increase from $150,000 to $155,000. Additionally, certain plans will see the following updates:
- The annual compensation limit under sections 401(a)(17), 404(I), 408(k)(3)(C), and 408(k)(6)(D)(ii) is increased from $330,000 to $345,000.
- The dollar limitation under section 416(i)(1)(A)(i) concerning the definition of “key employee” in a top-heavy plan is increased from $215,000 to $220,000.
- The limitation used in the definition of “highly compensated employee” under section 414(q)(1)(B) is increased from $150,000 to $155,000.
How to Change Your Contribution Amount
To change your contribution amount now or at anytime, please log into your P&A Retirement Plan Account. Under the “Manage” tab, select “Manage Contributions” and choose the option “Contribution Rate/Amount.” From there, you can choose to change your deferral amount by percentage or dollar.
Log into your P&A Retirement Account to check your balance, review your investments and more.
