IRS Announces 2024

Retirement Plan Limits

The Internal Revenue Service

(IRS) has released Notice 2023-

75, containing cost-of-living

adjustments for 2024 that affect

amounts employees can

contribute to 401(k) plans and

individual retirement accounts

(IRAs). The effective date of the

2024 retirement plan limits is

Jan. 1, 2024.

2024 Increases

The employee contribution limit

for 401(k) plans in 2024 has

increased to $23,000, up from

$22,500 for 2023. Other key

limit increases include the

following:

• The employee contribution

limit for IRAs is increased

to $7,000, up from $6,500.

• The IRA catch-up

contribution limit for

individuals aged 50 and

over remains unchanged at

$1,000 for 2024 (despite

this limit now including an

annual cost-of-living

adjustment because of

legislation enacted at the

end of 2022, referred to as

“SECURE 2.0”).

• The catch-up contribution

limit for employees aged 50

and over who participate in 401(k), 403(b), most 457

plans and the federal

government’s Thrift Savings

Plan remains unchanged

at $7,500. Therefore,

participants in these plans

who are 50 and older can

contribute up to $30,500,

starting in 2024.

• The employee contribution

limit for SIMPLE IRAs and

SIMPLE 401(k) plans is

increased to $16,000, up

from $15,500.

• The annual compensation

limit (applicable to many

retirement plans) is

increased to $345,000, up

from $330,000.

Additional limit changes relate

to the definitions for “highly

compensated employee” and

“key employee,” and limits to

profit-sharing and money

purchase plans. The income

ranges for determining eligibility

to make deductible

contributions to traditional IRAs,

contribute to Roth IRAs and

claim the Saver’s Credit also

increased for 2023. The

IRS’ news release outlines the

full limit changes and contains

more details.



Contact us today for more

resources.

Winter Attraction and

Retention Tips

While some industries are busy

due to holiday shopping and

seasonal employment,

recruiting often slows during the

winter months—especially after

the winter holidays. However,

winter is also when many job

candidates are setting goals and

making plans for the coming

year, which may include

searching for new jobs and

opportunities. Simultaneously,

many employers struggle to

keep employees engaged during

the winter months. Employers

may notice decreased

workplace productivity and

morale associated with the cold,

dark weather and stress of the

holidays and winter months.

Winter Attraction Tips

Employers can consider the

following strategies to improve

winter attraction:

• Launch an employee referral

program

• Share organizational and

employee successes on social

media

• Schedule interviews while

candidates have free time

around the holidays

• Recruit college or university

students who graduated during the fall semester or

plan ahead to the spring

• Create a mobile-friendly

application process

Winter Retention Tips

Employers can consider the

following practices to boost

employee retention during the

winter months:

• Recognize and reward

employees for good work

and accomplishments

• Offer holiday bonuses and

incentives

• Check in with employees on

a personal and professional

level

• Offer employees flexibility on

days of severe winter

weather

Conclusion



Employers that adopt a proactive

approach during the winter

months can combat employment

challenges that might otherwise

contribute to low morale,

decreased productivity and high

turnover rates. Contact us today

for more workplace resources.