Announcements

January 25, 2024

2024 contribution limits

Contribution maximums and other dollar limits are readjusted annually based on inflation.

The table below shows the allowable contribution amounts and dollar limits for 2024 and 2023.

Retirement plan contribution and dollar limits

Type

Limits

 

 

2024

2023

401(k) deferrals (total traditional and Roth employee contributions)

$23,000

$22,500

Catch-up contributions

$7,500

$7,500

Annual additions limit for DC plans

$69,000

$66,000

Annual compensation limit

$345,000

$330,000

Lookback year† compensation for Highly Compensated Employees (HCEs)

$155,000

$150,000

Taxable wage base for Social Security

$168,600

$160,200

Taxable wage base for Medicare

Unlimited

Unlimited
 

* The DC annual additions limit is effective for limitation years ending in the calendar year.

† Use current lookback year compensation to determine HCEs for the following year. For example, use the 2023 lookback compensation to determine the HCEs for the plan year beginning in 2024.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
Use of this website is intended for U.S. residents only.
Capital Client Group, Inc.
This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.