IRS Announces 2024 Pension Limits
The IRS has issued the annual cost-of-living adjustments (COLAs) to various pension limits that will apply in 2024. For 2024, the maximum annual benefit payable under a defined benefit plan increases to $275,000, and the elective deferral limit under a 401(k) plan or 403(b) plan increases to $23,000. Several key 2024 pension limits, as well as the Social Security taxable wage base, are noted in the chart below, along with prior years' limits.
|
Rate
|
2024
|
2023
|
2022
|
|
Maximum Annual Pension Benefit
|
$275,000
|
$265,000
|
$245,000
|
|
Maximum Contribution to a DC Plan
|
$69,000
|
$66,000
|
$61,000
|
|
Maximum Elective 401(k), 403(b), and 457 Deferrals
|
$23,000
|
$22,500
|
$20,500
|
|
Qualified Plan Compensation Limit
|
$345,000
|
$330,000
|
$305,000
|
|
Social Security Taxable Wage Base
|
$168,600
|
$160,200
|
$147,800
|
View Notice 2023-75 at Notice 2023-75 for additional changes for 2024. For Social Security changes, including the Taxable Wage Base, refer to the 2024 Social Security Changes announced at Social Security Changes - COLA Fact Sheet (ssa.gov).
If you have any questions about these or other limits or about their impact on your plan, please contact your Cheiron consultant.
Cheiron is an actuarial consulting firm that provides actuarial and consulting advice. However, we are neither attorneys nor accountants. Accordingly, we do not provide legal services or tax advice.