Reminders for 2024
2024 401(k) Profit Sharing Plan Annual Limits
The 401(k) / Roth contribution limit is $23,000 plus $7,500 catch-up for employees age 50 and over.
The maximum compensation eligible for plan purposes, including calculation of employer or matching contributions is $345,000.
The maximum total contributions in a defined contribution plan is $69,000 per person.
For a full chart of limits, visit our Annual Dollar Limits page
Timing Rules
Employee 401(k) and Roth contributions and loan payments must be deposited as soon as administratively feasible, or within 7 days after withholding from wages if the plan is small, or sooner if the plan is large.
Federal withholding of 20% is required on most cash distributions. If your company is responsible for this, the withholding must be deposited with the IRS by the 15th day of the following month in most cases.
Refunds to correct failed discrimination testing must be processed within 2.5 months following the close of the plan year, or the IRS charges a 10% penalty on the excess amount.
Employer contributions must be deposited before the filing due date of the company return, which is within 2.5 or 3.5 months of the company’s year end, depending on the entity type; or 8.5 months if extended for most entities.
Minimum Required Distributions must be taken by owners, having more than 5% ownership, and by terminated or retired employees who are over age 72. The first distribution must be taken by April 1 of the year following the participant turning age 72. Each subsequent distribution must be taken by December 31st.
Filing Requirements
Form 1099-Rs are required to be provided to participants who receive distributions from the plan by January 31st of the following year.
Form 5500 is required to be filed for qualified retirement plans by the end of the 7th month following the plan year end, or 9.5 months after year end if extended.
Other Forms may need to be filed for specific situations. ARS will advise when applicable.