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Elective deferral limitation (IRC §§401(a)(30) and 402(g)), Including Catch-up contribution limits (IRC §414(v)), and SIMPLE Plan limits (IRC §§408(p)(2) and 401(k)(11))
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Year |
402(g) limit |
Catch-up limit |
SIMPLE plan limit |
SIMPLE plan catch-up limit |
|---|---|---|---|---|
| 2024 | $23.000 |
$7,500 |
$16,000 |
$3,500 |
| 2023 | $22,500 |
$7,500 |
$15,500 |
$3,500 |
| 2022 | $20,500 |
$6,500 |
$14,000 |
$3,000 |
| 2021 | $19,500 |
$6,500 |
$13,500 |
$3,000 |
2020 |
$19,500 |
$6,500 |
$13,500 |
$3,000 |
2019 |
$19,000 |
$6,000 |
$13,000 |
$3,000 |
Section 415 limits
Applies to annual additions to a DC plan or the annual benefit payable from a DB plan for the limitation year ending designated calendar year
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** The comp limit factor is for participants who separate from service in the before the applicable year
Year DC Limit DB Limit DB Comp Limit Factor ** 2024 $69,000$275,000 1.0351 2023 $66,000$265,000 1.0833 2022 $61,000$245,000 1.0534 2021 $58,000$230,000 1.0122 2020 $57,000$230,000 1.0176 2019 $56,000$225,000 1.0264
Taxable Wage Base
Applies to wages for the designated calendar year; for permitted disparity calculations, applies to plan years beginning in the designated calendar year
| Year | TWB |
|---|---|
| 2024 | $168,600 |
| 2023 | $160,200 |
| 2022 | $147,000 |
| 2021 | $142,800 |
| 2020 | $137,700 |
| 2019 | $132,900 |
Latest covered compensation table. Rev. Rul. 2022-24 provides the latest compensation table, reflecting the 2023 taxable wage base.
Compensation requirements under HCE definition (IRC §414(q))
Applies to lookback years beginning in the designated calendar year
| Year | Comp threshold |
|---|---|
| 2024 | $155,000 |
| 2023 | $150,000 |
| 2022 | $135,000 |
| 2021 | $130,000 |
| 2020 | $130,000 |
| 2019 | $125,000 |
Compensation requirements under key employee officer test(IRC §416(i)(1))
Applies to plan years beginning in the designated calendar year
| Year | Comp threshold |
|---|---|
| 2024 | $220,000 |
| 2023 | $215,000 |
| 2022 | $200,000 |
| 2021 | $185,000 |
| 2020 | $185,000 |
| 2019 | $180,000 |
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For the 1% owner test, the compensation threshold is $150,000 and that is not subject to COLAs
Compensation requirement for participation in SEPs (IRC §408(k))
Applies to the employee's compensation for the designated calendar year
| Year | Comp threshold |
|---|---|
| 2024 | $750 |
| 2023 | $750 |
| 2022 | $650 |
| 2021 | $650 |
| 2020 | $600 |
| 2019 | $600 |
Annual deferral limit under section 457 plans (IRC §457(b))
Applies to 457(b) deferrals for the designated calendar year; not aggregated with elective deferrals to plans that are subject to the 402(g) limit
| Year | Limit |
|---|---|
| 2024 | $23,000 |
| 2023 | $22,500 |
| 2022 | $20,500 |
| 2021 | $19,500 |
| 2020 | $19,500 |
| 2019 | $19,000 |
ESOP Distribution Restrictions (IRC §409(o))
Applies to plan years beginning in the designated calendar year
| Year | Minimum Account Balance | Increment Amount |
|---|---|---|
| 2024 | $1,380,000 | $275,000 |
| 2023 | $1,330,000 | $265,000 |
| 2022 | $1,230,000 | $245,000 |
| 2021 | $1,165,000 | $230,000 |
| 2020 | $1,150,000 | $230,000 |
| 2019 | $1,130,000 | $225,000 |
IRA contribution limits and AGI phase-outs (IRC §§219, 408 and 408A)
Applies to IRA contributions and AGIs for the designated calendar year
| IRA Contribution Limits (including Roth) | ||
|---|---|---|
| Year | Basic Limiit | Age 50 Catch-up Limit |
| 2024 | $7,500 | $1,000 |
| 2023 | $6,500 | $1,000 |
| 2022 | $6,000 | $1,000 |
| 2021 | $6,000 | $1,000 |
| 2020 | $6,000 | $1,000 |
| 2019 | $6,000 | $1,000 |
| AGI Phase-out of traditional IRA limit for active participants | ||||
|---|---|---|---|---|
| Year | Married filing jointly (or qualifyng widow(er)) | Single or head of household | Married filing separately | Non-active participant married to active participant |
| 2024 | $123,000-$143,000 | $77,000-$87,000 | $0-$10,000 | $230,000=$240,000 |
| 2023 | $116,000-$136,000 | $73,000-$83,000 | $0-$10,000 | $218,000=$228,000 |
| 2022 | $109,000-$129,000 | $68,000-$78,000 | $0-$10,000 | $204,000=$214,000 |
| 2021 | $105,000-$125,000 | $66,000-$76,000 | $0-$10,000 | $198,000=$208,000 |
| 2020 | $104,000-$124,000 | $65,000-$75,000 | $0-$10,000 | $196,000-$206,000 |
| 2019 | $103,000-$123,000 | $64,000 - $74,000 | $0-$10,000 | $193,000 -$203,000 |
| AGI Phase-out of Roth contribution | |||
|---|---|---|---|
| Year | Married filing jointly (or qualifying widow(er)) | Single or head of household | Married filing separately |
| 2024 | $230,000-$240,000 | $146,000-$161,000 | $0-$10,000 |
| 2023 | $218,000-$228,000 | $138,000-$153,000 | $0-$10,000 |
| 2022 | $204,000-$214,000 | $129,000-$144,000 | $0-$10,000 |
| 2021 | $198,000-$208,000 | $125,000-$140,000 | $0-$10,000 |
| 2020 | $196,000-S206,000 | $124,000-$139,000 | $0-$10,000 |
| 2019 | $193,000-$203,000 | $122,000 - $137,000 | $0-$10,000 |
Health Savings Accounts (HSAs)
Applies to contribution limits, minimum deductibles, and maximum out-of-pocket expenses for the designated calendar year
| Year | Contribution Limit | Minimum deductible for High Deductible Health Plan (HDHP) | Maximum out-of-pocket expenses for HDHP |
|---|---|---|---|
| 2024 (Rev. Proc. 2023-23) |
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Saver’s Credit (IRC §25B)
Applies to credits for the designated calendar year; AGI above high end of 10% credit bracket entitled to $0 credit
| Year | AGI brackets for 50% credit | AGI Brackets for 20% credit | AGI Brackets for 10% credit |
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Penalty on Late Form 1099-Rs
| Taxable year | General penalty | Penalty if corrected within 30 days after due date | Penalty if corrected more than 30 days but before August 1st |
|---|---|---|---|
| 2024 (1099-R due in 2025) [Rev. Proc. 2023-34] |
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| 2023 (1099-R due in 2024) [Rev. Proc. 2022-38] |
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| 2022 (1099-R due in 2023) [Rev. Proc. 2021-45] |
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| 2021 (1099-R due in 2022) [Rev. Proc. 2020-45] |
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A "large filer" is a person with average annual gross receipts for the most recent 3-taxable-year period of more than $5 million; a "small filer" has average gross receipts of less than that. Higher penalties apply to intentional failures.
Maximum Aggregate Premiums for Qualified Longevity Contract (QLAC)
Limit applies to aggregate QLAC premiums for the designated calendar year
| Year | Limit |
|---|---|
| 2024 | $200,000 |
| 2023 | $200,000* |
| 2022 | $145,000 |
| 2021 | $135,000 |
| 2020 | $135,000 |
| 2019 | $130,000 |
* For 2023, the QLAC maximum aggregate premium was originally announced in Notice 2022-55 as $155,000, but the SECURE 2.0 raised that $200,000 for contract purchased after December 29, 2022.
PBGC Premiums and Guaranteed Benefit
Premium rates effective for premium years beginning in the designated calendar year (for premium rates in other years, see https://www.pbgc.gov/prac/prem/premium-rates); guaranteed benefit limits effective for termination dates falling in the designated calendar year (for maximum guaranteed benefits in other years, see https://www.pbgc.gov/wr/benefits/guaranteed-benefits/maximum-guarantee).
| Flat Rate Premiums | |||
| Premium Year | General | Multiemployer Plans | CSEC Plans |
| 2024 | $101 per participant | $37 per participant | $19 per participant |
| 2023 | $96 per participant | $35 per participant | $19 per participant |
| 2022 | $88 per participant | $32 per participant | $19 per participant |
| 2021 | $86 per participant | $31 per participant | $19 per participant |
| 2020 | $83 per participant | $30 per participant | $19 per participant |
| 2019 | $80 per participant | $29 per participant | $19 per participant |
For CSEC plans, premiums were at the general rate for pre-2019 years and the $19 per participant rate is not subject to COLAs. The SECURE Act lowered the rates for CSEC plans starting in the 2019 plan year.
| Variable Rate Premiums (VRPs) | |||
| Premium Year | General | CSEC Plans | Per participant CAP on VRP |
| 2024 | $52 per $1,000 of underfunding | $9 per $1,000 of underfunding | $686 |
| 2023 | $52 per $1,000 of underfunding | $9 per $1,000 of underfunding | $652 |
| 2022 | $48 per $1,000 of underfunding | $9 per $1,000 of underfunding | $598 |
| 2021 | $46 per $1,000 of underfunding | $9 per $1,000 of underfunding | $582 |
| 2020 | $45 per $1,000 of underfunding | $9 per $1,000 of underfunding | $561 |
| 2019 | $43 per $1,000 of underfudning | $9 per $1,000 of underfunding | $541 |
"Underfunding" means the value of Unfunded Vested Benefits (UVB). For CSEC plans, premiums were at the general rate for pre-2019 years and the $9 per $1,000 of underfunding rate is not subject to COLAs. The SECURE Act lowered the rates for CSEC plans starting in the 2019 plan year. SECURE 2.0 froze the VRP rate to $52 per $1,000 of undefunding, but did not freeze the indexing of the per-participant CAP. Multiemployer plans are not subject to the VRP.
| Maximum Guaranteed Benefits | |
| Year of plan termination | Maximum Monthly Guarantee at age 65 |
| 2024 | $7,107.95 |
| 2023 | $6,750.00 |
| 2022 | $6,204.55 |
| 2021 | $6,034.09 |
| 2020 | $5,812.50 |
| 2019 | $5,607.95 |
The monthly benefit shown in the table is for a single life annuity.
Present value of Maximum Guaranteed Benefit for benefit restriction purposes. Every year, the PBGC oublishes a table of the present value of the Maximum Guaranteed Benefit for ages 25 through 85. Under IRC §436(d)(3) and ERISA §206(g)(3)(C), if the "adjusted funding target attainment percentage" is at least 60% but less than 80%, a plan generally may not pay a prohibited payment to the extent the payment exceeds the lesser of: (1) 50% of the amount of the payment that would be paid if the restriction did not apply, or (2) the present value of the Maximum Guaranteed Benefit. For the latest table and the tables for prior years are available at the PBGC website, along with tables for prior years.
DOL Civil Penalties
On November 2, 2015, Congress enacted the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (“Inflation Adjustment Act”), which was Section 701 of the Bipartisan Budget Act of 2015, Public Law 114–74, to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect. The Inflation Adjustment Act required agencies to: (1) adjust the level of civil monetary penalties with an initial ‘‘catch-up’’ adjustment through an interim final rule (adopted in 2017), and (2) make subsequent annual adjustments for inflation.
* 2022 Adjustments. The adjustment multiplier for 2022 is 1.06222. The 2022 penalty levels are rounded to the nearest dollar after applying the multiplier. The 2022 penalty levels apply to any penalties assessed after January 15, 2022.
* Applicable dates for penalty levels..The table below shows the applicability dates for the penalty levels since the enactment of the Inflation Adjustment Act.There are hyperlinks to the regulations that adopted such levels. The hyperlink for the August 1, 2016, levels also provides the historical penalties before that date.
| Dates of Violation | Date Penalty Assessed | Penalty Level |
|---|---|---|
| On or before November 2, 2015 | On or before August 1, 2016 |
Pre-August 1, 2016, levels |
| On or before November 2, 2015 | After August 1, 2016 |
Pre-August 1, 2016, levels |
| After November 2, 2015 | AfterAugust 1, 2016, but,before January 14, 2017 |
August 1, 2016, levels |
| After November 2, 2015 | AfterJanuary 13, 2017, but,before January 3, 2018 |
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| After November 2, 2015 | AfterJanuary 2, 2018, but,before January 24, 2019 |
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| After November 2, 2015 | AfterJanuary 23, 2019, but,before January 16, 2020 |
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| After November 2, 2015 | AfterJanuary 15, 2020, but,before January 16, 2021 |
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After November 2, 2015 |
AfterJanuary 15, 2021, but,before January 16, 2022 |
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After November 2, 2015 |
After January 15, 2022 |
* 2022 penalty levels. The following table shows the 2022 penalty amounts. The 2022 amounts are calculated by multiplying the most recent penalty amount by the multiplier (1.06222) and rounding to the nearest dollar. The earlier levels can be accessed by using the hyperlinks in the above table. Note that the table below includes the civil penalties under ERISA §§502(c)(1) and 502(c)(3), but these penalties were not subject to the annual adjustments required by the Inflation Adjustment Act. See DOL Reg. §2575.2. The civil penalty under ERISA §502(c)(1) is set forth in DOL Reg. §2575.502c-1, and the civil penalty under ERISA §502(c)(3) is set forth in DOL Reg. §2575.502c-3. These penalties, which started at $100 per violation, were adjusted to $110 for violations occurring after July 29, 1997, and have not been adjusted since.
| Penalty citation | 2022 penalty level |
|---|---|
| ERISA §209(c) (employee benefit statements) | $33 (up $2) per employee |
| ERISA §502(c)(1) (periodic benefit statements under ERISA §105; defined benefit funding notices; failure to provide requested information) | $110 per day |
| ERISA §502(c)(2) (late Form 5500) | $2,400 (up $141) per day |
| ERISA §502(c)(3) (missed funding payments; notice of transfers to health benefits accounts) | $110 per day |
| ERISA §502(c)(4) (notice of benefit restrictions under IRC §436, multiemployer plan disclosures required under ERISA §101(k) and (l), and notice of automatic contribution arrangement under ERISA §514(e)(3)) | $1,899 (up $111) per day |
| ERISA §502(c)(5) (reporting requirements for MEWAs) |
$1,746 (up $102) per day |
| ERISA §502(c)(6) (furnishing documents requested by the DOL) | $171 (up $10) per day (Cap of $1,713 (up $100)) |
ERISA §502(c)(7) (blackout notices under ERISA §101(i)); notice under ERISA §101(m) of right to divest employer securities |
$152 (up $9) per day |
ERISA §502(m) (penalty on plan fiduciary for permitting plan to make a “prohibited payment” under ERISA §206(e) when the plan has a liquidity shortfall) |
$18,500 (up $1,084) |
Note: The table above does not include penalties applicable under ERISA §502(c)(8)-(12), but the latest penalties applicable to these ERISA sections are available in DOL Reg. §2575.3. Also, the penalty amount for ERISA §502(m) cannot exceed the value of the prohibited payment, if that's less than the shown dollar amount.
PBGC Civil Penalties
On November 2, 2015, Congress enacted the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Public Law 114–74 (“Inflation Adjustment Act”), to improve the effectiveness of civil monetary penalties and to maintain their deterrent effect. The Inflation Adjustment Act required agencies to: (1) adjust the level of civil monetary penalties with an initial ‘‘catch-up’’ adjustment through an interim final rule (adopted in 2017), and (2) make subsequent annual adjustments for inflation. The adjustment affects the PBGC penalty under ERISA §4071, which is assessed against any person who fails to provide any notice required by Subtitles A through D of Title IV (ERISA §§4001 through 4070) or by ERISA §303(k)(4) (relating to substantial unpaid funding requirements), and the penalty under ERISA §4302, which is assessed for a failure to provide a notice required by Subtitle E of Title IV of ERISA (ERISA §§4201 through 4281) with respect to a multiemployer plan. The following table shows the penalty adjustments since August 1, 2016.
| Annual adjustments of PBGC civil penalties (starting August 1, 2016) | |||
|---|---|---|---|
| Applicability dates | Penalty under ERISA §4071 | Penalty under ERISA §4302 | Adjustment Factor |
| After July 31, 2016, and before February 1, 2017 | $2,063 per day |
$275 per day |
2.80469 (“catch-up” adjustment) |
| After January 31, 2017, and before January 14, 2018 | $2,097 per day |
$279 per day |
1.016360 |
| After January 13, 2018, and before December 29, 2018 | $2,140 per day |
$285 per day |
1.020410 |
| After December 28, 2018, and before January 16, 2020 | $2,194 per day |
$292 per day |
1.025220 |
| After January 15, 2020, and before January 14, 2021 | $2,233 per day |
$297 per day |
1.017640 |
| After January 13, 2021, and before January 15, 2022 | $2,259 per day |
$301 per day |
1.011820 |
| After January 14, 2022, and before January 13, 2023 | $2,400 per day |
$320 per day |
1.062220 |
| After January 12, 2923 | $2,586 per day |
$345 per day |
1.077450 |
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TRI Pension Services
(303) 470-7964
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