Annual Plan Limits

Each year the U.S. government adjusts the limits for qualified plans and Social Security to reflect cost-of-living adjustments and changes in the law. Many of these limits are based on the “plan year” as defined in the plan document. The elective deferral and catch-up limits are always based on the calendar year.

2024 2023 2022 2021
Compensation $345,000 $330,000 $305,000 $290,000
Limits on benefits and contributions:
Defined contribution plans $69,000 $66,000 $61,000 $58,000
Defined benefit plans $275,000 $265,000 $245,000 $230,000
401(k), 403(b) and 457 plan elective deferrals $23,000 $22,500 $20,500 $19,500
SIMPLE plan elective deferrals $16,000 $15,500 $14,000 $13,500
IRA $7,000 $6,500 $6,000 $6,000
Catch-up contributions:
401(k), 403(b) and 457 plans $7,500 $7,500 $6,500 $6,500
SIMPLE plans $3,500 $3,500 $3,000 $3,000
IRA $1,000 $1,000 $1,000 $1,000
“Highly Compensated” definition $155,000 $150,000 $135,000 $130,000
“Key Employee” definition:
Officer $220,000 $215,000 $200,000 $185,000
1% owner $150,000 $150,000 $150,000 $150,000
Social Security taxable wage base $168,600 $160,200 $147,000 $142,800