IRS Increases Contribution Limit to $23,000 for 2024
2024 Annual Contribution Limits
The Internal Revenue Service announced on November 1, 2023 that the employee contribution limit for 457(b) plans – like the MO Deferred Comp Plan – will increase to $23,000 in 2024, up from $22,500 in 2023. The catch-up contribution limit for employees aged 50 will remain at $7,500 for 2024. This means, participants in deferred comp, who are 50 and older can contribute up to $30,500, starting in 2024.
|Maximum Annual Deferral – under age 50||$23,000||$22,500||$20,500|
|Age 50 and Over Catch-up Provision Limit||$7,500 ($30,500 total)||$7,500 ($30,000 total)||$6,500 ($27,000 total)|
|Pre-Retirement Catch-up Provision Limit||$23,000 ($46,000 total)||$22,500 ($45,000 total)||$20,500 ($41,000 total)|
2024 Saver's Credit Income Limits
The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers has also increased to $76,500 for married couples filing jointly, up from $73,000; $57,375 for heads of household, up from $54,750; and $38,250 for singles and married individuals filing separately, up from $36,500.
The Saver’s Credit is designed to help low- and moderate-income workers save for retirement by providing a dollar-for-dollar reduction on their tax bill by the amount of the credit. If you qualify, the credit is based on your contributions to an eligible retirement savings plan, like deferred comp. You may be eligible for 50%, 20% or 10% of the maximum contribution amount, depending on your filing status and adjusted gross income (AGI).