IRS raised contributions limits for 2024

The fact there's any limit is dumb AF

The total deferral for the 401k (for us solo 401k peeps) is now 69,000 instead of 66,000.

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Sucks I’m capped at putting 6% into my 401k. I’ve been pretty good on back dooring a Roth every year but need to look into other avenues to save.

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400k per year. Blessed.

:hedidthemath:

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The contribution cap for individual retirement accounts, or IRAs, will rise to $7,000 in 2024 from $6,500 this year.

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Sucks I’m capped at putting 6% into my 401k. I’ve been pretty good on back dooring a Roth every year but need to look into other avenues to save. 400k per year. Blessed.

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I got caped 10 years ago and my wife was capped 12 years ago working for the same company. She has moved on to another company so she can benefit but I’m still only allowed to put in 6%.


For employees to be classified as a Highly Compensated Employee (HCE), they need to meet certain qualifications set by the Internal Revenue Service (IRS):

They own 5% or more of the company regardless of their compensation. Ownership applies to spouses, children, and grandchildren working under a single company.
Their annual earning will be more than $150,000 in 2023. Compensation covers all income an employee receives from the company, including bonuses, commissions, and other types of incentive pay.
When ranked according to their compensation, they are in the top 20% of employees, and the employer has chosen to classify them as an HCE.

You're capped or you get a check back based on company-wide contributions not passing the HCE testing standards?

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My max out of pocket: $13,300/family (but $9,100/individual)

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I'm confused about your MOOP being $9,100 for individual coverage when that's higher than the MOOP maximum allowed but my brain hurts this morning so maybe it's me.

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I'm confused about your MOOP being $9,100 for individual coverage when that's higher than the MOOP maximum allowed

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I think it’s exactly the maximum allowed.

When looking at plans for our office for next year, it basically worked out perfectly such that any increase in (annualized) premium worked out to exactly the same reduction in MOOP. The odd exception was that it would be somewhat cheaper for those with insurance for the whole family, but those who had individual plans (the vast majority of employees) would be worse off. So we’ve stuck with the HDHP and encouraged employees to use an HSA.


Ex: plan that was an additional $200/m would result in a MOOP roughly $6700, plan that was additional $400/m would reduce the MOOP to about $4300. We currently pay a portion of insurance premiums for employees, but we aren’t in a position to eat that whole difference in premium, and literally everyone would be better off if they took that $200/m and tossed it in an HSA for the next 10 years, with the exception being someone who gets a major illness early and often. Fortunately, since our employees work in a doctors office, they have relatively low healthcare costs for basic stuff, so even a super high deductible doesn’t hurt them much.