Irs 401k Annual Compensation Limit 2024

Irs 401k Annual Compensation Limit 2024. The irs also sets annual compensation limits in order to ensure the fair participation of all employees who participate in 401(k) plans. The elective deferral limit for simple plans is 100% of compensation or $16,000 in 2024, $15,500 in 2023, $14,000 in 2022, and $13,500 in 2020 and 2021.


Irs 401k Annual Compensation Limit 2024

Starting in 2024, employees can contribute up to $23,000 into their 401(k), 403(b), most 457 plans or the thrift savings plan for federal employees, the irs announced nov. The limit on total employer and employee contributions for 2024 was $69,000 or 100% of employee compensation, whichever was less.

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