The IRS, CMS and Social Security Administration have released 2024 inflation adjustments for several benefit-related provisions, including those impacting retirement plans, health savings accounts, health flexible spending accounts, Social Security and Medicare. The table below includes the updated limits. These limits potentially impact design, administration, communication and tax reporting for the related benefit plans.
| 2023 | 2024 | |
|---|---|---|
| Retirement plans | ||
| Maximum recognizable compensation | $330,000 | $345,000 |
| Highly compensated breakpoint | $150,000 | $155,000 |
| §415 defined benefit limit | $265,000 | $275,000 |
| §415 defined contribution limit | $66,000 | $69,000 |
| Limit on pre-tax elective deferrals: Under age 50 Age 50 and over |
$22,500 $30,000 |
$23,000 $30,500 |
| Health savings accounts (HSAs) | ||
| Individual HDHP coverage: Maximum annual HSA contribution Minimum annual HDHP deductible Maximum annual HDHP out-of-pocket expenses |
$3,850 $1,500 $7,500 |
$4,150 $1,600 $8,050 |
| Family HDHP coverage: Maximum annual HSA contribution Minimum annual HDHP deductible Maximum annual HDHP out-of-pocket expenses |
$7,750 $3,000 $15,000 |
$8,300 $3,200 $16,100 |
| Catch-up contributions* | $1,000 | $1,000 |
| Health flexible spending accounts (FSAs) | ||
| Salary reduction contribution limit | $3,050 | $3,200 |
*These contributions are for individuals age 55 and older, prior to Medicare enrollment.
| 2023 | 2024 | |
|---|---|---|
| Retirement replacement | ||
| FICA: Wage base Tax rate |
$160,200 6.2% |
$168,600 6.2% |
| Primary insurance amount: CPI adjustment Maximum annual benefit at SSRA |
8.7% $43,524 |
3.2% $45,864 |
| Annual retirement earnings limit: Years before SSRA Year of SSRA After SSRA |
$21,240 $56,520 none |
$22,320 $59,520 none |
| Medicare | ||
| FICA: Wage base Tax rate[1] |
no limit 1.45% |
no limit 1.45% |
| Deductibles: Part A Part B Part D |
$1,600 $226 $505 |
$1,632 $240 $545 |
| Part A coinsurance: Days 1 – 60 Days 61 – 90 Lifetime reserve days |
$0 $400 $800 |
$0 $408 $816 |
| Part B coinsurance | 20% | 20% |
| Monthly Part B premium[2] | $164.90 | $174.70 |
| Monthly Part D base beneficiary premium[2] | $32.74 | $34.70 |
| Title | File Type | File Size |
|---|---|---|
| 2024 Benefit basics for pension and health and welfare plans | MB |
