The Internal Revenue Service recently released the 2024 benefit plan limits in the Internal Revenue Code. These updates were based on the annual cost-of-living adjustments. The new limits take effect on Jan. 1, 2024.
Employers should update their Summary Plan Descriptions and other materials highlighting the annual dollar limits. For assistance on updating your documents and communicating this new information with your employees, please contact the team at CanopyNation at hello@joincanopynation.com or 901-805-2860.
Welfare plans and fringe benefits
Health FSA:
- $3,200 limit proposed for 2024 (up from $3,050 in 2023)
The proposed carryover amount from 2023 to 2024 is $640, up from $610 last year.
Dependent care assistance plan:
- Married and filing together = $5,000 proposed for 2024 (same as last year)
- Married and filing separately = $2,500 proposed for 2024 (same as last year)
HDHP minimum annual deductible:
- Self-only coverage = $1,600 for 2024 (up from $1,500 in 2023)
- Family coverage = $3,200 for 2024 (up from $3,000 in 2023)
HDHP out-of-pocket maximum:
- Self-only coverage = $8,050 for 2024 (up from $7,500 in 2023)
- Family coverage = $16,100 for 2024 (up from $15,000 in 2023)
HSA maximum contribution:
- Self-only coverage = $4,150 for 2024 (up from $3,850 in 2023)
- Family coverage = $8,300 for 2024 (up from $7,750 in 2023)
- Catch-up contribution for participants over age 55 = $1,000 (same as last year)
“Key employees”:
- Officer group = $220,000 for 2024 (up from $210,000 in 2023)
- More-than-one-percent owner = $150,000 for 2024 (same as last year)
Highly compensated employee:
- $155,000 for 2024 (up from $150,000 in 2023)
Retirement benefits
Social Security taxable wage base:
- $168,600 for 2024 (up from $160,200 in 2023)
Basic limit on elective deferral amounts:
- $23,000 for 2024 (up from $22,500 in 2023)
- Limitation on catch-up contributions for participants over age 50 = $7,500 or 2024 (same as last year)
Elective deferral limit for SIMPLE plans:
- $16,000 for 2024 (up from $15,500 in 2023)
- Limitation on catch-up contributions for participants over age 50 = $3,500 or 2024 (same as last year)
IRA maximum contribution limit:
- $7,000 for 2024 (up from $6,500 in 2023)
- Limitation on catch-up contributions for participants over age 50 = $1,000 or 2024 (same as last year)
457 elective deferral limit:
- $23,000 for 2024 (up from $22,500 in 2023)
Annual dollar limit on includible compensation:
- $345,000 for 2024 (up from $330,000 in 2023)
Annual dollar limit on contributions:
- $69,000 for 2024 (up from $66,000 in 2023)