Article | Tax alert
2024 COLA announced for employee benefit plans
Nov. 28, 2023 · Authored by Christine Faris
The IRS and the Social Security Administration recently announced the cost-of-living adjustments to the applicable dollar limits on various employer-sponsored retirement and welfare plans and the Social Security wage base for 2024.
If you have any questions about the above information or how it may impact your tax situation, please contact a specialist on our team.
| Retirement plan limitation | 2023 | Δ | 2024 |
| 401(k) and 403(b) employee contribution limit | $22,500 | ↑ | $23,000 |
| Catch-up contribution limit (age 50 and older) | $7,500 | = | $7,500 |
| Defined contribution plan maximum contribution | $66,000 (plus catch-up) |
↑ | $69,000 (plus catch-up) |
| Defined benefit annual benefit limit | $265,000 | ↑ | $275,000 |
| Highly compensated employee threshold | $150,000 | ↑ | $155,000 |
| Key employee compensation threshold | $215,000 | ↑ | $220,000 |
| Annual compensation limit | $330,000 | ↑ | $345,000 |
| 457(b) elective deferral limit | $22,500 | ↑ | $23,000 |
| Social Security taxable wage base | $160,200 | ↑ | $168,600 |
| Health and welfare benefit plan limitation | 2023 | Δ | 2024 |
| Health flexible spending account (FSA) contribution limit | $3,050 | ↑ | $3,200 |
| Health Savings Account (HSA) contribution limits: | |||
|
$7,750 $3,850 $1,000 |
↑ ↑ = |
$8,300 $4,150 $1,000 |
| HSA annual deduction minimums: | |||
|
$3,000 $1,500 |
↑ ↑ |
$3,200 $1,600 |
| HSA out-of-pocket minimums: | |||
|
$15,000 $7,500 |
↑ ↑ |
$16,100 $8,050 |
| Dependent care assistance plan contribution limit | $5,000/$2,500 (if MFS) |
= | $5,000/$2,500 (if MFS) |
| Qualified transportation fringe benefit monthly limits: | |||
|
$300 $300 |
↑ ↑ |
$315 $315 |
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