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 | 2020 | |
|---|---|---|---|---|---|
| Maximum compensation limit | $345,000 | $330,000 | $305,000 | $290,000 | $285,000 |
| Defined Contribution Plans 415 Contribution Limit | $69,000 | $66,000 | $61,000 | $58,000 | $57,000 |
| Defined Benefit Plans 415 Benefit Limit | $275,000 | $265,000 | $245,000 | $230,000 | $230,000 |
| 401(k), 403(b) and 457 plan elective maximum elective deferrals | $23,000 | $22,500 | $20,500 | $19,500 | $19,500 |
| - Catch-up contributions | $7,500 | $7,500 | $6,500 | $6,500 | $6,500 |
| SIMPLE plan elective deferrals | $16,000 | $15,500 | $14,000 | $13,500 | $13,500 |
| - Catch-up contributions | $3,500 | $3,500 | $3,000 | $3,000 | $3,000 |
| IRA | $7,000 | $6,500 | $6,000 | $6,000 | $6,000 |
| - Catch-up contributions | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
| Highly Compensated Salary Threshold | $155,000 | $150,000 | $135,000 | $130,000 | $130,000 |
| Officer Salary Threshold | $220,000 | $215,000 | $200,000 | $185,000 | $185,000 |
| Social Security taxable wage base | $168,600 | $160,200 | $147,000 | $142,800 | $137,700 |
For Plans that are on an off-calendar year, compensation is based on the annual limits in effect at the beginning of the Plan Year while contribution limits are based on the annual limits in effect at the end of the Plan Year.
“For over 30 years our law firm has utilized the expertise and services of PRCA and have recommended many clients to them whom have been equally satisfied. PRCA has been extremely attentive and kept us current with current regulations and changes regarding our plan needs. They are always on top of their game in every respect and we recommend them highly for any business plan needs. ”
