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.
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2024 |
2023 |
2022 |
|
|
IRAs |
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| IRA Contribution Limit |
$7,000 |
$6,500 |
$6,000 |
| IRA Catch-Up Contributions |
$1,000 |
$1,000 |
$1,000 |
|
IRA AGI Deduction Phase-out Starting |
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| Joint Return |
$123,000 |
$116,000 |
$109,000 |
| Single or Head of Household |
$77,000 |
$73,000 |
$68,000 |
|
SEP |
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| SEP Minimum Compensation |
$750 |
$750 |
$650 |
| SEP Maximum Contribution |
$69,000 |
$66,000 |
$61,000 |
| SEP Maximum Compensation |
$345,000 |
$330,000 |
$305,000 |
|
SIMPLE Plans |
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| SIMPLE Maximum Contributions |
$16,000 |
$15,500 |
$14,000 |
| Catch-up Contributions |
$3,500 |
$3,500 |
$3,000 |
|
401(k), 403(b), Profit-Sharing Plans, etc. |
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| Annual Compensation |
$345,000 |
$330,000 |
$305,000 |
| Elective Deferrals |
$23,000 |
$22,500 |
$20,500 |
| Catch-up Contributions |
$7,500 |
$7,500 |
$6,500 |
| Defined Contribution Limits |
$69,000 |
$66,000 |
$61,000 |
| ESOP Limits |
$1,380,000 $275,000 |
$1,330,000
$265,000 |
$1,230,000 $245,000 |
|
Other |
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| HCE Threshold |
$155,000 |
$150,000 |
$135,000 |
| Defined Benefit Limits |
$275,000 |
$265,000 |
$245,000 |
| Key Employee |
$220,000 |
$215,000 |
$200,000 |
| 457 Elective Deferrals |
$23,000 |
$22,500 |
$20,500 |
| Control Employee (board member or officer) |
$135,000 |
$130,000 |
$120,000 |
| Control Employee (compensation-based) |
$275,000 |
$265,000 |
$245,000 |
| Taxable Wage Base |
$168,600 |
$160,200 |
$147,000 |