Maximum Benefits and Contributions Limits for 2023 to 2024 (Posted on November 1, 2023 by )


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Type of Limitation 2024 2023
Elective Deferrals (401(k) and 403(b); not including adjustments and catch-ups) $23,000 $22,500
457(b)(2) and 457(c)(1) Limits (not including catch-ups) $23,000 $22,500
Section 414(v) Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans $7,500 $7,500
Defined Benefit Plans $275,000 $265,000
Defined Contribution Plans (annual additions limit) $69,000 $66,000
Annual Compensation Limit $345,000 $330,000
Annual Compensation Limit for Grandfathered Participants in Governmental Plans Which Followed 401(a)(17) Limits (With Indexing) on July 1, 1993 $505,000 $490,000
Highly Compensated Employee (“HCEs”) $155,000 $150,000
Key Employee/Officer $220,000 $215,000
Individual Retirement Accounts (“IRAs”), for individuals 49 and below $7,000 $6,500
Individual Retirement Accounts (“IRAs”), for individuals 50 and above $8,000 $7,500
SIMPLE Retirement Accounts $16,000 $15,500
SEP Coverage $750 $750
SEP Compensation $345,000 $330,000
Tax Credit ESOP Maximum Balance $1,380,000 $1,330,000
Amount for Lengthening of 5-Year ESOP Period $275,000 $265,000
Maximum Amount for Qualified Longevity Annuity Contract Purchases $200,000 $155,000
Income Subject to Social Security Tax $168,600 $160,200
FICA Tax for employers 7.65% 7.65%
FICA Tax for employees 7.65% 7.65%
Social Security Tax for employers 6.2% 6.2%
Social Security Tax for employees 6.2% 6.2%
Medicare Tax for employees and employers 1.45% 1.45%
SECA Tax for self-employed workers 15.3% 15.3%
Social Security Tax for self-employed workers 12.4% 12.4%
Medicare Tax for self-employed workers 2.9% 2.9%
Footnotes:
3. This number is only the catch-up available under Code section 414(v). Code sections 457(b)(3) and 402(g) provide separate catch-up rules, which must also be considered in appropriate cases.
4. Beginning in 2013, there is also a 0.9 percent Additional Medicare Tax that applies to an individual’s wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the individual’s filing status. The threshold amounts are $250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately, and $200,000 for all other taxpayers. An employer is responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year.
This number is only the catch-up available under Code section 414(v). Code sections 457(b)(3) and 402(g) provide separate catch-up rules, which must also be considered in appropriate cases.
Beginning in 2013, there is also a 0.9 percent Additional Medicare Tax that applies to an individual’s wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the individual’s filing status. The threshold amounts are $250,000 for married taxpayers who file jointly, $125,000 for married taxpayers who file separately, and $200,000 for all other taxpayers. An employer is responsible for withholding the Additional Medicare Tax from wages or compensation it pays to an employee in excess of $200,000 in a calendar year.