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