IRS Sets 2024 Retirement Benefits and Contribution Limits
On November 1, 2023, the Internal Revenue Service (IRS) announced benefit and contribution limits for employer-sponsored retirement plans for the 2024 tax year. The following chart summarizes the 2024 limits, with 2023 limits included for comparison. This information is available on the Benefits & Contribution Limits page in the BA Guide on the NRECA Employee Benefits website.
| 2024 | 2023 | Code Section | |
| 401(k) Pension Plan | |||
| Maximum annual compensation for calculating employer contributions | $345,000 | $330,000 | IRC §401(a)(17)/404(I) |
| Compensation limit for the definition of highly compensated employees* | W-2 greater than $150,000 in 2023 | W-2 greater than $135,000 in 2022 | IRC §414(q)(1)(B) |
| Maximum annual additions (employer plus all employee contributions) | Lesser of: Total compensation; or $69,000 | Lesser of: Total compensation; or $66,000 | IRC§415(c) |
| Maximum amount of elective deferrals | $23,000 | $22,500 | IRC §402(g)(1) |
| Age 50 and over catch-up contributions | $7,500 | $7,500 | IRC §414(v) |
| FICA taxable wage base (OASDI) | $168,600 | $160,200 | n/a |
| Retirement Security Plan | |||
| Maximum annual compensation for calculating benefit accruals | $345,000 | $330,000 | IRC §401(a)(17)/404(I) |
| Maximum annual annuity (payable in life only form of benefit); Adjusted lower for other forms of benefit and for commencement before age 62 | $275,000 | $265,000 | IRC §415(b)(1)(A) |
| Compensation limit for the definition of highly compensated employees* | W-2 greater than $150,000 in 2023 | W-2 greater than $135,000 in 2022 | IRC §414(q)(1)(B) |
| * W-2 greater than $155,000 in 2024 will make a person a highly compensated employee for 2025 | |||
Full details on the 2024 adjustments are available on the IRS website (see Notice 2023-75). A table showing cost-of-living adjustments with historical limits is also available online. NRECA’s Retirement Security Plan projection calculator will be updated to reflect these 2024 limits for benefit estimates by the coming week. Contact your NRECA field representative with questions about the contribution limits or other plan features. For questions about 457(b) Plans, contact the NRECA Nonqualified Deferred Compensation Program team at 703.907.6375 or deferredcomp@nreca.coop.