2024 Cost of Living Adjustments
By Louis F. LiBrandi, Partner
Plan sponsors should review the cost-of-living adjustments (COLAs) to determine what, if any, changes need to be communicated to employees by means of orientation meetings and enrollment forms. In addition, the amounts may need to be updated and/or keyed into the payroll or other human resources information systems used by the employer to monitor contributions made to an employee benefit plan.
The table below contains the dollar limitation for retirement plans and other benefit plan limits and thresholds for the 2022 through 2024 tax years. In 2024 many of the amounts have been increased.
Cost of Living Adjustments
402(g) Elective Deferrals.
Maximum salary-reduction contribution; 401(k), 403(b) and 457(b) plans.
Age 50 or older additional salary reduction contributions; 401(k), 403(b), government 457(b) plans.
401(a)(17) Compensation Limit. Ceiling for using compensation to determine benefits in a qualified retirement plan.
415(m) Maximum dollar amount for a defined contribution plan (excludes catch-up).
Highly Compensated Employee (HCE).
Compensation earned in a prior year is used to determine if a participant is an HCE.
Key Employee. Minimum compensation for an officer to be treated as a ‘’key employee.”
Social Security Wage Base
Social Security Taxable Wage Base.
Health FSA Contribution Limit.
HSA Contribution Limit – Single.
HSA Contribution Limit – Family.
Age 55 or older.
The Employee Benefit Services Group at PKF O’Connor Davies is available to assist employers with all aspects of employee benefit plan compliance. For more information, please contact your client services partner or either of the following:
Timothy J. Desmond, CPA
Employee Benefit Services
[email protected] | 551.249.1728
Louis F. LiBrandi, EA, CEBS, ChFC, TGPC
Employee Benefit Services Group
[email protected] | 646.449.6327