Is Your Retirement Plan Up to Date?

Laws and regulations frequently change for retirement plans, so make sure your company’s plan is up to date by looking at the graphs below!

IRS updated cost-of-living adjustments (COLAs) applicable to contribution limitations for qualified retirement plans.

For Plan Years Beginning In 2024 2023 2022 2021 2020
Taxable Wage Base $168,600 $160,200 $147,000 $142,800 $137,700
Medicare Taxable Wage Base No Limit No Limit No Limit No Limit No Limit
Defined Benefit Limit $275,000 $265,000 $245,000 $230,000 $230,000
Compensation Limit $345,000 $330,000 $305,000 $290,000 $285,000
SEP Coverage $750 $750 $650 $650 $600
Key Employee 2024 2023 2022 2021 2020
Officer Compensation Exceeding $220,000 $215,000 $200,000 $185,000 $185,000
A more than 1% Owner Compensation Exceeding $150,000 $150,000 $150,000 $150,000 $150,000
A more than 5% Owner
Highly Compensated Employees 2024 2023 2022 2021 2020
Compensation Exceeding $155,000 $150,000 $135,000 $130,000 $130,000
Top Paid Group and Compensation Exceeding $155,000 $150,000 $135,000 $130,000 $130,000
A more than 5% Owner
For Plan Years Ending In 2024 2023 2022 2021 2020
Defined Contribution Limit $69,000 $66,000 $61,000 $58,000 $57,000
For Calendar Year 2024 2023 2022 2021 2020
401(k) Deferral Limit $23,000 $22,500 $20,500 $19,500 $19,500
401(k) “Catch-Up” Contribution * $7,500 $7,500 $6,500 $6,500 $6,500
SIMPLE Deferral Limit $16,000 $15,500 $14,000 $13,500 $13,500
SIMPLE “Catch-Up” Contribution $3,500 $3,500 $3,000 $3,000 $3,000

* Applies to Participants who have their 50th birthday (or older) during the calendar year.


Q: How do I benefit by selecting TSC 401K as my third party administrator?
A: At TSC 401K your plan will be serviced by a team of highly qualified professionals who have extensive training and retirement plan administration experience. We learn about your unique needs, goals, and circumstances to provide a customized plan designed to meet your specific objectives.
A: A qualified plan is a great way to attract and retain high quality employees. It also provides significant tax benefits to business owners and employees by allowing them to make tax-deferred contributions.
A: Unbundling means that you’ll be able to choose the plan service providers (financial advisor, investment company, and third-party administrator) that best suit the needs of your business. You’ll be able to select a team that is committed to providing excellent service – each specializing in what they do best but working together to provide you with a customized and optimized plan.
A: Like using an unbundled service provider arrangement, deciding to have your own plan gives you much greater flexibility in how you choose to design and operate your plan. Instead of having to follow the group plan’s limitations and rules, you’ll be able to choose a plan design that is optimized for your specific needs. Additionally, you’ll benefit by being able to choose the specific services that you need, not having to pay for the full slate of services that the group plan requires.
A: While SEP and SIMPLE IRA plans can work well for very small employers and start-up businesses, there are significant advantages to establishing a 401(k) plan. First off, 401(k) plans benefit from significantly higher employee deferral limits than a SIMPLE IRA and greater flexibility than a SEP in determining how employer contributions are allocated. Also, a 401(k) plan provides significantly more flexibility in terms of plan design and plan features. For business owners or executives looking to defer taxable income while providing a meaningful benefit to their employees, a 401(k) plan is usually the best place to start.
A: While there are significant tax and HR benefits in offering a retirement plan, there are some technical requirements that must be met to keep the plan in compliance. TSC 401K specializes in helping businesses make sure that those requirements are met. TSC 401K provides signature-ready plan documents that contain the specific provisions for your custom-designed plan. Likewise, we prepare the summary plan descriptions, employee notices, and summary annual reports that are designed to keep your employees up to date of the plan’s features and operation. Finally, we prepare the annual compliance testing and governmental reporting that demonstrate that the plan is operating in accordance with the applicable rules and regulations.

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Contact TSC 401K today to work with experts who make delivering the best possible retirement plan for your business simple and secure.

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