In a move that directly impacts retirement savers and employers alike, the IRS has recently unveiled the updated 401(k) contribution limits for the year 2024. These limits play a crucial role in shaping retirement planning strategies for both employees and employers. Employers and individuals should take the time to understand the implications of the increased limits and make any necessary adjustments.
| Plan Type | 2023 | 2024 |
| 401(k), 403(b), most 457 plans and Thrift Savings Plan | $22,500 | $23,000 |
| 401(k) catch-up contribution for ages 50 and older | $7,500 | $7,500 |
Starting in 2024, a total of $30,500 can be contributed by an employee who is 50 years or older. Additional details on these and other retirement-related cost of living adjustments for 2024 are in Notice 2023-75, available for review on the IRS website.
Employers should take the time to communicate this information to their employees so they can make the appropriate adjustments to their paycheck withholdings. This bump to the contribution limits allows employees to save even more for retirement than ever before.
At DM Payroll Solutions, we offer 401(k) 360 integration which allows our systems to directly integrate with many of the major recordkeeping platforms. This provides seamless data sharing between systems to eliminate frustrating data submissions and expedite plan deposits, as well as year-end compliance requirements. Contact us today to learn more about how our 401(k) 360 integration works.
