COLA increases for dollar limitations on benefits and contributions

 

The tax law places limits on the dollar amount of contributions to retirement plans and IRAs and the amount of benefits under a pension plan. IRC Section 415 requires the limits to be adjusted annually for cost-of-living increases.

IRAs 2024 2023 2022 2021
IRA Contribution Limit $7,000 $6,500 $6,000 $6,000
IRA Catch-Up Contributions 1,000 1,000 1,000 1,000
Traditional IRA AGI Deduction Phase-out Starting at 2024 2023 2022 2021
Joint Return 123,000 116,000 109,000 105,000
Single or Head of Household 77,000 73,000 68,000 66,000
SEP 2024 2023 2022 2021
SEP Minimum Compensation 750 750 650 650
SEP Maximum Contribution 69,000 66,000 61,000 58,000
SEP Maximum Compensation 345,000 330,000 305,000 290,000
SIMPLE Plans 2024 2023 2022 2021
SIMPLE Maximum Contributions 16,000 15,500 14,000 13,500
Catch-up Contributions 3,500 3,500 3,000 3,000
401(k), 403(b), Profit-Sharing Plans, etc. 2024 2023 2022 2021
Annual Compensation 345,000 330,000 305,000 290,000
Elective Deferrals 23,000 22,500 20,500 19,500
Catch-up Contributions 7,500 7,500 6,500 6,500
Defined Contribution Limits 69,000 66,000 61,000 58,000
ESOP Limits

1,380,000

275,000

1,330,000

265,000

1,230,000

245,000

1,165,000

230,000

Other 2024 2023 2022 2021
HCE Threshold 155,000 150,000 135,000 130,000
Defined Benefit Limits 275,000 265,000 245,000 230,000
Key Employee 220,000 215,000 200,000 185,000
457 Elective Deferrals 23,000 22,500 20,500 19,500
Control Employee (board member or officer) 135,000 130,000 120,000 115,000
Control Employee (compensation-based) 275,000 265,000 245,000 235,000
Taxable Wage Base 168,600 160,200 147,000 142,800