{ Banner Image }

IRS Announces 2024 Cost-of-Living Adjustments for Retirement Plans and for Health and Welfare Benefit Plans

Saving for RetirementThis blog has been updated since November 8, 2022. The data below is current.

The IRS has announced the 2024 cost-of-living adjustments for retirement plan and health and welfare benefit plan limitations. The charts below set forth the applicable limitations.

Retirement Plans

Similar to previous years, the IRS has again increased the limits for several retirement plan limits for 2024. The rows below represent some of the important changes.

Retirement Plan Limitation

2023 Limit

2024 Limits

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 Maximum Contribution

$66,000

(plus “Catch-Up”)

$69,000

(plus “Catch-Up”)

Defined Benefit Annual Benefit Limit

$265,000

$275,000

Highly Compensated Employee Compensation

$150,000

$155,000

Top-Heavy Key Employee Officer Dollar Limit

$215,000

$220,000

Annual Compensation Limit

$330,000

$345,000

457(b) Plan Contribution Limit

$22,500

$23,000

Social Security Taxable Wage Base

$160,200

$168,600

A complete explanation of all changes can be found in Notice 2023-75.

Health and Welfare Benefit Plans

The changes in limitations that apply to health and welfare plans are steeper for 2024 than they were in 2023. Notably, the limits for amounts that may be set aside for a Health Savings Account has been increased by 7% for a family and 8% for an individual. The following chart outlines the changes to these limits, but a full explanation can be found in Notice 2023-23 and Notice 2023-34.

Health and Welfare Benefit Plan Limitation

2023 Limit

2024 Limit

Health Flexible Spending Account (FSA) Contribution Limit

$3,050

$3,200

Health Savings Account (HSA) Contribution Limits

-    Family

-    Single

-    Catch-Up Limit (age 55 and older)



$7,750

$3,850

$1,000



$8,300

$4,150

$1,000

HSA Annual Deduction Minimums

-    Family

-    Single



$3,000

$1,500



$3,200

$1,600

HSA Out-of-Pocket Maximums

-    Family

-    Single



$15,000

$7,500



$16,100

$8,050

Qualified Transportation Fringe Benefit Monthly Limits

-    Qualified Parking

-    Transit Pass/Vanpooling



$300

$300



$315

$315

The dependent care assistance limit is currently $5,000 and has remained unchanged for a number of years.

If you have question related to these limits or how they affect the administration of your plan, please contact one of the authors of this article.

Categories: Employee Benefits, Retirement

Photo of Mindi M. Johnson
Shareholder

With a business-minded approach, and service-oriented delivery, Mindi helps clients navigate challenges and solve problems in the areas of employee benefits law and health care law. Mindi has spoken and written extensively on employee benefits, health care reform, and health care law topics, and is actively involved in a number of legal, professional and industry organizations focused on these issues.

View All Posts by Author ›

Type the following characters: november, niner, tango, papa, six, papa

* Indicates a required field.