On November 1st, the IRS released a number of inflation adjustments for 2024, including to certain limits for qualified retirement plans. As expected, this year’s adjustments are more modest than last year’s significant increases. The table below provides an overview of the key adjustments for qualified retirement plans.
| Qualified Defined Benefit Plans | |||
| 2023 | 2024 | Increase from 2023 to 2024 | |
| Annual Maximum Benefit | $265,000 | $275,000 | $10,000 |
| Qualified Defined Contribution Plans | |||
| 2023 | 2024 | Increase from 2023 to 2024 | |
| Aggregate Annual Contribution Limit | $66,000 | $69,000 | $3,000 |
| Annual Pre-Tax/Roth Contribution Limit | $22,500 | $23,000 | $500 |
| Catch-Up Contribution Limit for Individuals 50+ | $7,500 | $7,500 | — |
| Other Adjustments for Qualified Plans | |||
| 2023 | 2024 | Increase from 2023 to 2024 | |
| Annual Participant Compensation Limit | $330,000 | $345,000 | $15,000 |
| Highly Compensated Employee Threshold | $150,000 | $155,000 | $5,000 |
| Key Employee Compensation Threshold for Top Heavy Testing | $215,000 | $220,000 | $5,000 |