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.
| Limitation | 2024 | 2023 | 2022 |
|---|---|---|---|
| Maximum annual pretax and/or Roth elective deferrals for employees under age 50 (401(k), 403(b), and governmental 457(b) plans). | $23,000 | $22,500 | $20,500 |
| “Catch-up” pretax and/or Roth contribution for employees who turn age 50 by the last day of the calendar year (401(k), 403(b), and governmental 457(b) plans). | $7,500 | $7,500 | $6,500 |
| Maximum annual additions limit of combined employee and employer contributions for 401(k) or 403(b) plans (Catch-up contributions are not counted towards limit). | $69,000 | $66,000 | $61,000 |
| Income limit used to determine following years highly compensated employees (HCE). “HCE” in 2022 will include an employee paid more than $130,000 in 2021. “HCE” in 2023 will include an employee paid more than $135,000 in 2022. “HCE” in 2024 will include an employee paid more than $150,000 in 2023. | $155,000 | $150,000 | $135,000 |
| Annual Compensation Limit (Compensation above this limit is not counted for plan purposes). | $345,000 | $330,000 | $305,000 |
SECURE Act provides Audit Relief from the Department of Labor for Some Plans Written by Jeremiah “JP” Perryman, QKA on April 10, 2024
Navigating Long-Term Part-Time Employee Eligibility for 401(k) and 403(b) Plans Written by Jeremiah “JP” Perryman, QKA on March 27, 2024 Planning for retirement is
| Date | Description |
|---|---|
| January 1 | New Annual Limits Apply |
| March 15 (Or the first business day following) | Return of excess contributions for failed ADP and ACP Tests |
| March 15 (Or the first business day following) | Employer contributions due for calendar year partnerships, S Corps, and LLCs taxed as partnerships (unless tax extension is filed). |
| April 1 | Initial Required Minimum Distributions must be made |
| April 15 (Or the first business day following) | Employer contributions due for corporations and LLCs taxed as corporations (unless tax extension is filed). |
| June 30 (Or the first business day following) | Return of excess contributions for failed ADP and ACP Tests for EACA Plans (only) |
| July 31 (Or the first business day following) | IRS Form 5500 and schedules due (unless extension form 5558 is filed by this date). |
| September 30 | Summary Annual Report (SAR) to be distributed to participants and beneficiaries (unless extension form 5558 is filed). |
| October 15 (Or the first business day following) | IRS Form on IRS Form 5558 Extension Due |
| December 1 | Distribution of Annual Notices |
| December 15 | Summary Annual Report (SAR) to be distributed to participants and beneficiaries for plans that filed a 5558. |
| December 31 | Ongoing Required Minimum Distributions must be made |
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