IRS Releases 2024 Benefit Plan Limits

IRS Releases 2024 Benefit Plan Limits

November 28, 2023

The IRS recently released the 2024 benefit plan limits based on the annual cost-of-living adjustments in the Internal Revenue Code. These limits take effect beginning January 1, 2024. Final limits for health FSAs and DCAPs are still pending. Employers should update their Summary Plan Descriptions and other materials highlighting the annual dollar limits and watch for future developments.

Retirement Benefits

 

2024 Limit

2023 Limit

Basic limit on elective deferral amounts

$23,000

$22,500

Limitation on catchup contributions for participants over age 50

$7,500

No change

Elective deferral limit for SIMPLE plans

$16,000

$15,500

Limitation on catchup contributions for participants over age 50

$3,500

No change

IRA maximum contribution limit

$7,000

$6,500

Limitation on catchup contributions for participants over age 50

$1,000

No change

457 elective deferral limit

$23,000

$22,500

Annual dollar limit on includable compensation

$345,000

$330,000

Annual additional dollar limit on contributions

$69,000

$66,000


Welfare Plans and Fringe Benefits

 

2024 Limit

2023 Limit

Health FSA

$3,200
(proposed)

$3,050

Health FSA carryover (amount that can be carried over from 2023 into 2024)

$640
(proposed)

$610

DCAP

 

 

Unless married and filing separately

$5,000
(proposed)

$5,000

Married and filing separately

$2,500
(proposed)

$2,500

HDHP minimum annual deductible

 

 

Self-only coverage

$1,600

$1,500

Family coverage

$3,200

$3,000

HDHP out-of-pocket maximum

 

 

Self-only coverage

$8,050

$7,500

Family coverage

$16,100

$15,000

HSA maximum contribution

 

 

Self-only coverage

$4,150

$3,850

Family coverage

$8,300

$7,750

Catch-up contribution for participants over age 55

$1,000

No change

“Key employees”

 

 

Officer group

$220,000

$215,000

More-than-one-percent owner

$150,000

No change

Highly-compensated employee

$155,000

$150,000