Plan Limits
401(k) PLANS/403(b) PLANS 2023 2024
The calendar year limitation on elective deferrals under IRC §402(g)(1). $22,500 $23,000
Catch-up contribution amount under IRC §414(v)(2)(B)(i) for participants $7,500 $7,500
who are age 50 or older by the last day of the calendar year.
DEFINED CONTRIBUTION PLAN LIMITATION
The limitation for defined contribution plans (Profit Sharing, $66,000 $69,000
401(k), Money Purchase) under IRC §415(c)(1)(A). This code
section limits the allocation of contribution (salary deferral, match,
employer contribution) to a participant to the lesser of 100%
of compensation or this amount. Catch-up contributions (see
above) may be made in addition to this amount.
HIGHLY COMPENSATED EMPLOYEE
Compensation for purposes of defining highly compensated $150,000 $155,000
employees under IRC §414(q)(1)(B). A highly compensated
employee is as follows:
1) More than 5% owner (and family members under stock attribution rules)
2) Employee earning over the above amount in the prior plan year*
This means if you earn over $150,000 during the Plan Year beginning in
2023* then you will be considered a highly compensated employee for
the plan year beginning in 2024.
*and, if elected, are in the top 20% of employees, ranked by compensation
COMPENSATION LIMIT
The annual compensation limit under IRC §401(a)(17) and $330,000 $345,000
404(l). This is the maximum compensation amount which can
be used for contribution allocations and discrimination testing.
KEY EMPLOYEE
Compensation for purposes of defining key employee under $215,000 $220,000
IRC §416(i)(1)(A)(i).