Law and Policy
Health, wealth and global news, views and analysis, written by Mercer legislative, regulatory and policy pros with practical insights for employers and benefit…
2024 retirement plan limits now set
November 3, 2023
IRS Notice 2023-75 provides official 2024 limits for qualified defined benefit and defined contribution retirement plans and Internal Revenue Code (IRC) Section 403(b) plans, matching Mercer’s earlier projections. Almost every key limit will rise from 2023 to 2024. The 2024 limits reflect increases in the Consumer Price Index for All Urban Consumers (CPI-U) from the third quarter of 2022 to the third quarter of 2023. Only the catch-up contribution limit, which has a relatively large rounding value, will stay the same next year.
| IRC retirement plan limit | 2024 | 2023 |
| 401(k), 403(b) and eligible 457 plan elective deferrals (and designated Roth contributions) | $23,000 | $22,500 |
| 414(v)(2)(B)(i) catch-up contributions (plans other than SIMPLE plans) | 7,500 | 7,500 |
| 415(b) defined benefit plan annuity | 275,000 | 265,000 |
| 415(c) defined contribution plan annual addition | 69,000 | 66,000 |
| 401(a)(17) and 408(k)(3)(C) compensation | 345,000 | 330,000 |
| 414(q)(1)(B) highly compensated employee and 414(q)(1)(C) top-paid group | 155,000 | 150,000 |
| 416(i)(1)(A)(i) officer compensation for top-heavy plan key employee | 220,000 | 215,000 |
Related resources
Non-Mercer resources
- Notice 2023-75 (IRS, Nov. 1, 2023)
Mercer Law & Policy resources
- Mercer projects 2024 retirement plan limits (updated) (Oct. 12, 2023)
- Quick benefit facts and COLA resources for benefit plans, 2017–2023 (Jan. 25, 2023)
About the author(s)
