Overview of 2024 IRS Cost-of-Living Adjustments
The Internal Revenue Service (IRS) has released the updated cost-of-living adjustments for 2024, affecting both retirement plan and health and welfare benefit plan limits. Below are charts detailing these new limitations.
Retirement Plan Limitations
| Retirement Plan Limitation | 2023 Limit | 2024 Limit |
|---|---|---|
| 401(k) and 403(b) Employee Contribution Limit | $22,500 | $23,000 |
| “Catch-Up Contribution” Limit (age 50 and older) | $7,500 | $7,500 |
| Defined Contribution Maximum Contribution | $66,000 (plus “Catch-Up”) | $69,000 (plus “Catch-Up”) |
| Defined Benefit Annual Benefit Limit | $265,000 | $275,000 |
| Highly Compensated Employee Compensation | $150,000 | $155,000 |
| Top-Heavy Key Employee Officer Dollar Limit | $215,000 | $220,000 |
| Annual Compensation Limit | $330,000 | $345,000 |
| 457(b) Plan Contribution Limit | $22,500 | $23,000 |
| Social Security Taxable Wage Base | $160,200 | $168,600 |
Health and Welfare Benefit Plan Limitations
| Health and Welfare Benefit Plan Limitation | 2023 Limit | 2024 Limit |
|---|---|---|
| Health Flexible Spending Account (FSA) Contribution Limit | $3,050 | $3,200 |
| Health Savings Account (HSA) Contribution Limits: Family | $7,750 | $8,300 |
| Health Savings Account (HSA) Contribution Limits: Single | $3,850 | $4,150 |
| Catch-Up Limit (age 55 and older) | $1,000 | $1,000 |
| HSA Annual Deduction Minimums: Family | $3,000 | $3,200 |
| HSA Annual Deduction Minimums: Single | $1,500 | $1,600 |
| HSA Out-of-Pocket Maximums: Family | $15,000 | $16,100 |
| HSA Out-of-Pocket Maximums: Single | $7,500 | $8,050 |
| Qualified Transportation Fringe Benefit Monthly Limits: Qualified Parking | $300 | $315 |
| Qualified Transportation Fringe Benefit Monthly Limits: Transit Pass/Vanpooling | $300 | $315 |
Note: The dependent care assistance limit remains unchanged at $5,000.