Announcements

December 20, 2023

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 contribution

$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.

You may wish to inform employees in your 401(k) plans of these changes. The letters below, which you can customize, can help you get started. Simply replace the bolded, italicized sections with information that relates to your company or plan. One letter includes catch-up contributions and the other does not.

2024 contribution limits letter with catch-up contributions

2024 contribution limits letter without catch-up contributions

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