2024 Cost-of-Living Adjustments for Qualified Retirement Plans
BDO has published a highlighted summary of the significant cost-of-living adjustments (COLA) effective for 2024. These adjustments recently announced by the Internal Revenue Service (IRS) and the Social Security Administration (SSA) have a wide-ranging impact, including the savings rate for retirement plans. In general, annual compensation amounts and limits for elective deferrals were increased, while catch-up contribution limits remain unchanged.
| Code Section | 2024 | 2023 | 2022 |
| 401(a)(17) /404(l) Annual Compensation | $345,000 | $330,000 | $305,000 |
| 402(g)(1) Elective Deferrals | $23,000 | $22,500 | $20,500 |
| 408(k)(2)(C) SEP Minimum Compensation | $750 | $750 | $650 |
| 408(k)(3)(C) SEP Maximum Compensation | $345,000 | $330,000 | $305,000 |
| 408(p)(2)(E) SIMPLE Maximum Contributions | $16,000 | $15,500 | $14,000 |
| 409(o)(1)(C)(ii) ESOP Limits | $1,380,000 | $1,330,000 | $123,000 |
| $275,000 | $265,000 | $245,000 | |
| 414(q)(1)(B) HCE Threshold | $155,000 | $150,000 | $135,000 |
| 414(v)(2)(B)(i) Catch-up Contributions | $7,500 | $7,500 | $6,500 |
| 414(v)(2)(B)(ii) Catch-up Contributions | $3,500 | $3,500 | $3,000 |
| 415(b)(1)(A) DB Limits | $275,000 | $265,000 | $245,000 |
| 415(c)(1)(A) DC Limits | $69,000 | $66,000 | $61,000 |
| 416(i)(1)(A)(i) Key Employee | $220,000 | $215,000 | $200,000 |
| 457(e)(15) Deferral Limits | $23,000 | $22,500 | $20,500 |
| 1.61-21(f)(5)(i) Control Employee | $135,000 | $130,000 | $120,000 |
| 1.61-21(f)(5)(iii) Control Employee | $275,000 | $265,000 | $245,000 |
| Taxable Wage Base for Social Security | $168,600 | $160,200 | $147,000 |
