Check out the updated 2024 Federal benefit limits for 401(k), HSA, and simple IRA, and more. Stay informed and plan your finances with confidence!
Effective 1 January 2024, the following federal benefit limits have been updated:
| Limit Type | 2023 Limit | 2024 Limit |
|---|---|---|
| Annual contribution/elective deferral | $22,500 | $23,000 |
| Catch-up contribution | $7,500 | $7,500 |
| Combined limit for defined contribution plans | $66,000 | $69,000 |
| Annual compensation | $330,000 | $345,000 |
| Limit Type | 2023 Limit | 2024 Limit |
|---|---|---|
| Annual FSA contribution limit | $3,050 | $3,200 |
| Dependent care FSA limit | $5,000 for individual or MFJ, $2,500 for MFS | $5,000 for individual or MFJ, $2,500 for MFS |
| Limit Type | 2023 Limit | 2024 Limit |
|---|---|---|
| Maximum annual contribution for an eligible individual with self-only coverage | $3,850 | $4,150 |
| Maximum annual contribution for an eligible individual with family coverage | $7,750 | $8,350 |
| Catch-up contribution for individuals age 55 and over | $1,000 | $1,000 |
| Limit Type | 2023 Limit | 2024 Limit |
|---|---|---|
| Annual compensation | $330,000 | $345,000 |
| Annual contribution/elective deferral | $15,500 | $16,000 |
| Catch-up contribution | $3,500 | $3,500 |
| SECURE 2.0 increased deferral limit | N/A (see below) | $17,600 |
| SECURE 2.0 increased catch-up deferral limit | N/A | $3,850 |
For 2024, there are new increased limits available for 2024 due to the SECURE 2.0 Act. Employees participating in a SIMPLE IRA plan can use an increased deferral limit of $17,600 (i.e., a 10% on the $16,000 annual contribution limit) if the employer meets one of the following conditions:
The 10% increase also applies to the catch-up deferral limit for employees who are age 50 or older.
References:
Celebrate National Payroll Week 2024, September 2-6! Join the fun, take the survey for a chance to win big, and honor payroll pros. Discover the joy of getting paid and learn more about this year’s theme: "America Works Because We’re Working for America ®."
Tax Day is on Monday, Apr 15, 2024. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!
IRS has updated tax brackets for 2024. See how this affects your first paycheck this year!
