There have been a number of annual limits announced for 2024, from health savings account contributions to the Social Security wage cap, but employers are still waiting for one important figure: the annual 401(k) contribution limit.
The announcement from the IRS should be coming any day. While the annual announcement usually comes in mid- to late October, it has been released in November before.
Although the official announcement hasn’t been made yet, many analysts predict that the 2024 401(k) contribution limit will jump $500 to $23,000, from the $22,500 limit in 2023. That was a forecast made by consulting firms Mercer and Milliman.
Both predict that the catch-up contribution limit for employees ages 50 and older who participate in 401(k) and 403(b) plans, most 457 plans, and the federal government’s Thrift Savings Plan will stay the same next year. It is currently set at $7,500.
Mercer also predicted Oct. 12 that:
- The 415(c) defined contribution plan maximum annual addition will increase to $68,000 next year from $66,000 in 2023.
- The 414(q)(1)(B) highly compensated employee and 414(q)(1)(C) top-paid group limit will rise to $155,000 from $150,000.
- 401(a)(17) and 408(k)(3)(C) compensation will rise to $340,000 from $330,000 in 2023.
More updates to come as the IRS releases official limits.