New IRS Retirement Plan Limits Announced

The IRS recently released updated Pension Plan Limitations for the 2024 Plan Year. Follow this link to get a summary of the new limitations, including the limits set during the past four years. Important changes to highlight for the 2024 Plan Year are as follows:

Defined Contribution Plans:

For participants who will be age 49 or less during 2024

401(k) deferral limits have increased to $23,000;
The total contribution limit, including both employee and employer contributions, will be limited to $69,000;

For participants who will attain age 50 or older during 2024

401(k) deferral limits have increased to $30,500 ($23,000 plus the $7,500 catch up contribution permitted);
The total defined contribution limit, including both employee and employer contributions, will be limited to $76,500 ($69,000 plus the $7,500 catch up contribution permitted);

For all participants during 2024:

Compensation will be limited to a maximum of $345,000;
The Cash Balance/ Defined Benefit Plan annual limit is $275,000;
The maximum permissible lump sum distributions from a Cash Balance/ Defined Benefit Plan is $3.417 million during 2024 (at age 62);

For all 401(k) plans please be sure all Plan participants receive notification of the new limits in advance of the 2024 Plan Year, which will allow them time to adjust 401(k) deferral elections for the 2024 plan year, if necessary.

2024 IRS Pension Plan Limitations