The IRS recently released the 2024 benefit plan limits based on the annual cost-of-living adjustments in the Internal Revenue Code. These limits take effect beginning January 1, 2024. Employers should update their Summary Plan Descriptions and other materials highlighting the annual dollar limits.
RETIREMENT BENEFITS
| 2024 Limit | 2023 Limit | |
| Basic limit on elective deferral amounts | $23,000 | $22,500 |
|
$7,500 | No Change |
| Elective deferral limit for SIMPLE plans | $16,000 | $15,500 |
|
$3,500 | No Change |
| IRA Maximum Contribution Limit | $7,000 | $6,500 |
|
$1,000 | No Change |
|
$23,000 | $22,500 |
|
$345,000 | $333,000 |
|
$69,000 | $66,000 |
WELFARE PLANS & FRINGE BENEFITS
| 2024 Limit | 2023 Limit | |
| Health FSA | $3,200 | $3,050 |
| Health FSA carryover (amount that can be carried over from 2023 into 2024) | $640 | $610 |
| DCAP | ||
| Unless married and filing separately | $5,000 | No Change |
| Married and filing separately | $2,500 | No Change |
| HDHP minimum annual deductible | ||
| Self-only coverage | $1,600 | $1,500 |
| Family coverage | $3,200 | $3,000 |
| HDHP out-of-pocket maximum | ||
| Self-only coverage | $8,050 | $7,500 |
| Family coverage | $16,100 | $15,000 |
| HSA maximum contribution | ||
| Self-only coverage | $4,150 | $3,850 |
| Family coverage | $8,300 | $7,750 |
| Catch-up contribution for participants over age 55 | $1,000 | No Change |
| Key Employees | ||
| Office Group | $220,000 | $215,000 |
| More-than-one-percent owner | $150,000 | No Change |
| Highly-compensated employee | $155,000 | $150,000 |
