Updated Limits, COLAs

[John Feldt ERPA CPC QPA]

The CPI-U for September 2023 was published with a value of 307.789. Based on Tom Poje's spreadsheet, the dollar limits for 2024 are projected to be:

Almost all increased (NOT Official yet, of course):

Deferral limit: $23,000 (up from $22,500)

Catchup: $7,500 (unchanged)

Compensation Limit: $345,000 (up from $330,000)

Annual Addition Limit: $69,000 (up from $66,000)

DB Limit: $275,000 (up from $265,000)

HCE: $155,000 (up from $150,000)

Key Employee: $220,000 (up from $215,000)

 

Just for reference, the unrounded figures are:

Catchup: $7,793.00

Deferral limit: $23,379

Compensation Limit: $345,220

Annual Addition Limit: $69,044

DB Limit: $276,176

HCE: $155,984

Key Employee: $224,393

[John Feldt ERPA CPC QPA]

SSA just announced the taxable wage base for 2024 will be $168,600.

https://www.ssa.gov/oact/cola/cbb.html

[MDCPA]

Thanks John. I have my own spreadsheet I've maintained for years and I came up with the same results, rounded and unrounded.

[pmacduff]

Thank you John, much appreciated! 

[John Feldt ERPA CPC QPA]

Amounts shown above are confirmed. https://www.irs.gov/pub/irs-drop/n-23-75.pdf

[Carol V. Calhoun]

Chart showing limits back to 1996 has been updated. 

[John Feldt ERPA CPC QPA]

The CPI-U for September 2024 was published with a value of 315.301. Based on Tom Poje's spreadsheet, the dollar limits for 2025 are projected to be:

Almost all increased (NOT Official yet, of course):

Deferral limit: $23,500 (up from $23,000)

Catchup: $7,500 (unchanged)

Compensation Limit: $350,000 (up from $345,000)

Annual Addition Limit: $70,000 (up from $69,000)

DB Limit: $280,000 (up from $275,000)

HCE: $160,000 (up from $155,000)

Key Employee: $230,000 (up from $220,000)

 

Just for reference, the unrounded figures are:

Catchup: $7,997.50

Deferral limit: $23,993

Compensation Limit: $354,260

Annual Addition Limit: $70,852

DB Limit: $283,408

HCE: $160,072

Key Employee: $230,269

[John Feldt ERPA CPC QPA]

And according to SSA.gov, the Social Security taxable wage base will increase to $176,100 in 2025 from $168,600 in 2024.

[Peter Gulia]

Does this mean the 2025 elective-deferral limit for a participant age 60 to 63 is $34,750?

[Jeff Hartmann]

1 hour ago, Peter Gulia said:

Does this mean the 2025 elective-deferral limit for a participant age 60 to 63 is $34,750?

Agreed,   the  Catch-Up limit for  ages 60-63  is  $11,250,   so the total is   $23,500 + $11,250 = $34,750.

Note, the unrounded amounts were just a few $ short of the next "bumps"  ....   would have been  $24,000 + $12,000 if September CPI had come in slightly higher.

 

....  Jeff

[Peter Gulia]

Mercer’s recent writeup of the anticipated indexing (helpfully furnished by BenefitsLink’s Bakers) includes an explanation that the $11,250 amount assumes Congress’s technical correction or an Internal Revenue Service interpretation.