Retirement Planning Key Numbers

Feb 21, 2024Personal Finance, Retirement Planning

Certain retirement plan and IRA limits are indexed for inflation each year, and 2024 saw increases in many figures. Some of the key numbers are listed below, with the corresponding limit for 2023. (The source for the 2024 numbers is IRS Notice 2023-75.)

Elective deferral limits
401(k) plans, 403(b) plans, 457(b) plans, and SAR-SEPs 1 (includes Roth contributions)
SIMPLE 401(k) plans and SIMPLE IRA plans 1
2023
Lesser of $22,500 or 100% of participant's compensation ($30,000 if age 50 or older) 2
Lesser of $15,500 or 100% of participant's compensation ($19,000 if age 50 or older)
2024
Lesser of $23,000 or 100% of participant's compensation ($30,500 if age 50 or older) 2
Lesser of $16,000 or 100% of participant's compensation ($19,500 if age 50 or older)
IRA contribution limits
Traditional and Roth IRAs
2023
Lesser of $6,500 or 100% of earned income ($7,500 if age 50 or older)
2024
Lesser of $7,000 or 100% of earned income ($8,000 if age 50 or older)
Defined benefit plan annual benefit limits
Annual benefit limit per participant
2023
Lesser of $265,000 or 100% of average compensation for highest three consecutive years
2024
Lesser of $275,000 or 100% of average compensation for highest three consecutive years
Defined contribution plan limits [qualified plans, 403(b) plans, and SEP plans]
Annual addition limit per participant (employer contributions; employee pre-tax, after-tax, and Roth contributions; and forfeitures)
2023
Lesser of $66,000 or 100% (25% for SEP) of participant's compensation
2024
Lesser of $69,000 or 100% (25% for SEP) of participant's compensation
1 Must aggregate employee deferrals to all 401(k), 403(b), SAR-SEP, and SIMPLE plans of all employers; 457(b) contributions are not aggregated. For SAR-SEPs, the percentage limit is 25% of compensation reduced by elective deferrals (effectively a 20% maximum contribution).

2 Special catch-up limits may also apply to 403(b) and 457(b) plan participants.

Retirement plan compensation limits
Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans/SEPs)
Compensation threshold used to determine a highly compensated employee
Compensation threshold used to determine a key employee in a top-heavy plan
Compensation threshold used to determine a qualifying employee under a SIMPLE plan
Compensation threshold used to determine a qualifying employee under a SEP plan
2023
$330,000
$150,000 (when 2023 is the look-back year)
$1 for more-than-5% owners
$215,000 for officers
$150,000 for more-than-1% owners
$5,000
$750
2024
$345,000
$155,000 (when 2024 is the look-back year)
$1 for more-than-5% owners
$220,000 for officers
$150,000 for more-than-1% owners
$5,000
$750
Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers:
1. Covered by an employer-sponsored plan and filing as:
Single/Head of household
Married filing jointly
Married filing separately
2. Not covered by an employer-sponsored retirement plan, but filing joint return with a spouse who is covered by a plan
2023
$73,000 - $83,000
$116,000 - $136,000
$0 - $10,000
$218,000 - $228,000
2024
$77,000 - $87,000
$123,000 - $143,000
$0 - $10,000
$230,000 - $240,000
Income phase-out range for determining ability to fund a Roth IRA for taxpayers filing as:
Single/Head of household
Married filing jointly
Married filing separately
2023
$138,000 - $153,000
$218,000 - $228,000
$0 - $10,000
2024
$146,000 - $161,000
$230,000 - $240,000
$0 - $10,000

IMPORTANT DISCLOSURES Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2021.