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Investment Services,
Key Numbers for 2024 Retirement Planning

2024 Retirement Plan Contribution Limits

8-minute read | Jan 2, 2024

Salal Investment Services

Available through CUSO Financial Services, L.P.*

Adrian A. Hedwig

Financial Advisor, CUSO Financial Services, L.P.*
Available by appointment at all Salal Credit Union branches.
Virtual and phone meetings also available.
P: 206.607.3481
F. 206.299.9530
AdrianH.CFSInvest@SalalCU.org

Certain retirement plan and IRA limits are indexed for inflation each year, and 2024 saw increases in many figures. Some of the key numbers are listed below, with the corresponding limit for 2023. (The source for the 2024 numbers is IRS Notice 2023-75.)

 
Elective deferral limits20232024
401(k) plans, 403(b) plans, 457(b)
plans, and SAR-SEPs1
(includes
Roth contributions)		Lesser of $22,500 or 100% of participant’s compensation ($30,000 if age 50 or older)2Lesser of $23,000 or 100% of participant’s compensation ($30,500 if age 50 or older)2
SIMPLE 401(k) plans and SIMPLE IRA plans1Lesser of $15,500 or 100% of participant’s compensation ($19,000 if age 50 or older)Lesser of $16,000 or 100% of participant’s compensation ($19,500 if age 50 or older)
IRA contribution limits:20232024
Traditional and Roth IRAsLesser of $6,500 or 100% of earned income ($7,500 if age 50 or older)Lesser of $7,000 or
100% of earned income ($8,000 if age 50 or older)
Defined benefit plan annual benefit limits:20232024
Annual benefit limit per participantLesser of $265,000 or 100% of average
compensation for highest three consecutive years		Lesser of $275,000 or 100% of average compensation for highest three consecutive years
Defined contribution plan limits [qualified plans, 403(b) plans, and SEP plans]:20232024
Annual addition limit per participant
(employer contributions; employee pre-tax, after-tax, and Roth contributions; and forfeitures)		Lesser of $66,000 or 100% (25% for SEP) of participant’s compensationLesser of $69,000 or 100% (25% for SEP) of participant’s compensation
Retirement plan compensation limits:20232024
Maximum compensation per participant that can be used to calculate tax-deductible employer
contribution (qualified plans/SEPs)		$330,000$345,000
Compensation threshold used to determine a highly compensated
employee		$150,000 (when 2023 is the look-back year)$155,000 (when 2024 is the look-back year)
Compensation threshold used to determine a key employee in a
top-heavy plan		$1 for more-than-5% owners
$215,000 for officers
$150,000 for more-than-1% owners		$1 for more-than-5% owners
$220,000 for officers
$150,000 for more-than-1% owners
Compensation threshold used to determine a qualifying employee under a SIMPLE plan
$5,000$5,000
Compensation threshold used to determine a qualifying employee under a SEP plan$750$750
Income phase-out range for determining deductibility of traditional IRA contributions for taxpayers:20232024
1. Covered by an
employer-sponsored plan and filing as:
Single/Head of household$73,000 – $83,000$77,000 – $87,000
Married filing jointly$116,000 – $136,000$123,000 – $143,000
Married filing separately$0 – $10,000$0 – $10,000
2. Not covered by an
employer-sponsored retirement
plan, but filing joint return with a
spouse who is covered by a plan		$218,000 – $228,000$230,000 – $240,000
Income phase-out range for determining ability to fund a ROTH IRA for taxpayers filing as:20232024
Single/Head of household$138,000 – $153,000$146,000 – $161,000
Married filing jointly$218,000 – $228,000$230,000 – $240,000
Married filing separately$0 – $10,000$0 – $10,000

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1 Must aggregate employee deferrals to all 401(k), 403(b), SAR-SEP, and SIMPLE plans of all employers; 457(b) contributions are not aggregated. For SAR-SEPs, the percentage limit is 25% of compensation reduced by elective deferrals (effectively a 20% maximum contribution).
2 Special catch-up limits may also apply to 403(b) and 457(b) plan participants.

Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual’s personal circumstances.

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the  accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

IMPORTANT DISCLOSURES:

IMPORTANT DISCLOSURES:
*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (member FINRA / SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The credit union has contracted with CFS to make non-deposit investment products and services available to credit union members.

This communication is strictly intended for individuals residing in the state(s) of CA, IA, IL, MN, NV, OH, OR, VA, VT, and WA. No offers may be made or accepted from any resident outside the specific states referenced.

The information, data, analyses and opinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future results. Except as otherwise required by law, we shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. Please consult with your financial advisor before making any investment decisions.

This communication is strictly intended for individuals residing in the state(s) of CA, IA, IL, MN, NV, OH, OR, VA, VT, and WA. No offers may be made or accepted from any resident outside the specific states referenced.

Articles prepared for Salal Investment Services by Broadridge Investor Communication Solutions, Inc. Copyright 2023. Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, or legal advice. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

The information, data, analyses and opinions presented herein do not constitute investment advice; are provided solely for informational purposes and therefore are not an offer to buy or sell a security. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future results. Except as otherwise required by law, we shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, the information, data, analyses or opinions or their use. Please consult with your financial advisor before making any investment decisions.

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