Understanding Employee Benefits and key developments in the employee benefits field and items of interest to our clients. MORE

On November 1, 2023, the Internal Revenue Service (IRS) released Notice 2023-75, which sets forth the 2024 cost-of-living adjustments affecting dollar limits on benefits and contributions for qualified retirement plans. The IRS also announced the health savings account (HSA) and high deductible health plan (HDHP) annual deductible and out-of-pocket expense adjustments earlier this year in Revenue Procedure 2023-23 and the health flexible spending arrangement (Medical FSA) adjustments in Revenue Procedure 2023-34. Finally, the Social Security Administration announced its cost-of-living adjustments for 2024 on October 12, 2023, which includes a change to the taxable wage base.

The following chart summarizes the 2024 limits for benefit plans. The 2023 limits are provided for reference.

Elective Deferral Limit 401(k), 403(b), 457(b)$22,500$23,000
Catch-up Limit (age 50+)$7,500$7,500
Defined Benefit Limit$265,000$275,000
Defined Contribution Limit$66,000$69,000
Dollar Limit – Highly Compensated Employees$150,000$155,000
Officer – Key Employee$215,000$220,000
Annual Compensation Limit$330,000$345,000
SEP Eligibility Compensation Limit$750$750
SIMPLE Deferral Limit$15,500$16,000
SIMPLE Catch-up Limit (age 50+)$3,500$3,500
Social Security Taxable Wage Base$160,200$168,600
ESOP 5 Year Distribution Extension Account Minimum$1,330,000$1,380,000
Additional Amount for 1-Year Extension$265,000$275,000
HSA (Self/Family) Maximum Annual Contribution$3,850/$7,750$4,150/$8,300
HDHP (Self/Family) Minimum Deductible Limits$1,500/$3,000$1,600/$3,200
Out-of-pocket Expense Annual Maximum  $7,500/$15,000    $8,050/$16,100
Medical FSA$3,050$3,200
Maximum Medical FSA Carryover to Next Plan Year$610$640

For more information on the 2024 cost-of-living adjustments, please contact Lisa Rippey, Sam Butler, or the Stinson LLP contact with whom you regularly work.