IRS Releases 401(k) and Pension Plan Limitations for 2024

The Internal Revenue Service (IRS) has announced cost-of-living adjustments affecting dollar limitations for 401(k), pension plans and other retirement-related items for tax year 2024 in Notice 2023-75.

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is increased to $23,000 in 2024, up from $22,500 in 2023.

The limitation on the annual benefit under a defined benefit plan under section 415(b)(1)(A) is increased from $265,000 to $275,000.

The limitation for defined contribution plans under section 415(c)(1)(A) is increased in 2023 from $66,000 to $69,000.