Plan Limits

COMMON RETIREMENT PLAN DOLLAR LIMITATIONS

	2024	2023	2022
401(k), 403(b), Profit Sharing Plans
Elective Deferral Limit	23,000	22,500	20,500
Catch-up Contributions	7,500	7,500	6,500
Compensation Limit	345,000	330,000	305,000
Annual Addition Limit	69,000	66,000	61,000
General
Taxable Wage Base	168,600	160,200	147,000
Highly Compensated Employee	155,000	150,000	135,000
Key Employee:
Officer	220,000	215,000	200,000
1% Owner	150,000	150,000	150,000

Restatement

PLAN RESTATEMENTS

Pre-Approved Defined Contribution Plans

The majority of profit sharing and 401(k) plans are on pre-approved plan documents.  These documents are required to be restated, which is a complete re-writing of the plan document, on a six year cycle as determined by the IRS.

All pre-approved defined contribution plan documents were required to be restated to incorporate the provisions of the Post PPA (Cycle 3).  All plans should have been restated by July 31, 2022 during the IRS restatement window.

There will be an opportunity to amend the plan document to incorporate provisions of the SECURE Act and SECURE 2.0.

Individually Designed Plans

All ESOPs we administer are individually designed plans drafted by an attorney. Some profit sharing and 401(k) plans are also individually designed plans.  Individually designed plans were on a five year restatement cycle but the IRS eliminated that pre-set schedule.  Plan restatements are now coordinated with the ERISA attorney.

Please contact KJ Retirement Consultants, LLC at (763) 497-0866 if you are not sure whether your plan document is an individually designed plan or a pre-approved plan.