2024 Cost-of-Living Adjustments (COLAs)
The IRS has announced the 2024 cost-of-living adjustments (COLAs), which impact retirement plans for more than 71 million Americans. These taxpayers will see a 3.2% bump in monthly Social Security benefits and supplemental security income payments in 2024, which on average, increases benefits by more than $50 per month beginning in January.
The 2024 Social Security Wage Base will increase to $168,600, which reflects a $8,400 increase from 2022. We’ve compiled a side-by-side comparison of the dollar limitations for benefits and contributions for the past three years. Many of these have minimal to no change from 2023. Contact your BMF Advisor if you have questions on these dollar limitations or to discuss your tax planning strategy.
Read more about the Social Security Cost-of-Living adjustment for 2024.
401(k), 403(b), 457 Contributions
|Elective Deferrals||$ 23,000||$ 22,500||$ 20,500|
|IRA Catch-Up Contributions||1,000||1,000||1,000|
Simplified Employee Pensions (SEPs)
|Minimum Compensation 408(k)(2)(c)||750||750||650|
|Maximum Compensation 408(k)(3)(c)||345,000||330,000||305,000|
401(k), 403(b), 457 Plans
|Annual Compensation 401(a)(17)/404(I)||345,000||330,000||305,000|
|Defined Contribution Limits 415(c)(1)(A)||69,000||66,000||61,000|
|ESOP Limit 409(o)(1)(c) – account balance||1,380,000||1,330,000||1,230,000|
|ESOP Limit 409(o)(1)(c) – lengthening 5-year period||275,000||265,000||245,000|
|Highly Compensated Employee||155,000||150,000||135,000|
|Defined Benefit Annual Limit||275,000||265,000||245,000|
|Key Employee Compensation||220,000||215,000||200,000|
|Social Security Taxable Wage Base||168,600||160,200||147,000|
Megan L. Kishman?>
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