Plan Limits
What You Need to Know About Cash Balance Plans
Our team in Oklahoma City, OK can set you up with this type of defined benefit plan
Tristar Pension Consulting can set you up with a cash balance plan if it's your best option. To understand this plan, you should know the difference between defined benefit and defined contribution plans. With a defined benefit plan, participants will know exactly how much they'll receive at retirement. With a defined contribution plan, employers will state a percentage of compensation to invest. The resulting retirement benefit for participants is based on gains and losses from said investment.
Cash balance benefit plans are a type of defined benefit plan with terms similar to direct contribution plans. However, you'll have a guaranteed balance at retirement.
To learn more about cash balance benefit plans, speak to one of our team members in Oklahoma City, OK today.
Limits On Compensation
| Plan Limits | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 401(k), 403(b), and 457, and Defined Benefit Plans | $345,000.00 | $330,000.00 | $305,000 | $290,000 | $285,000 |
| Social Security Wage Base | $168,600.00 | $160,200.00 | $147,000 | $142,800 | $137,700 |
Limits on Benefits and Contributions
| Plan Limits | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 401(k), 403(b), and 457 Plan Elective Deferrals | $23,000.00 | $22,500.00 | $20,500 | $19,500 | $19,500 |
| Defined Benefit Plans | $275,000.00 | $265,000.00 | $245,000 | $230,000 | $230,000 |
| Defined Contribution Total Additions | $69,000.00 | $66,000.00 | $61,000 | $58,000 | $57,000 |
| SIMPLE Plan Elective Deferrals | $16,000.00 | $15,500.00 | $14,000 | $13,500 | $13,500 |
| IRA Contributions | $7,000.00 | $6,500.00 | $6,000 | $6,000 | $6,000 |
| HCE "Highly Compensated Employee" Definition | $155,000.00 | $150,000.00 | $135,000 | $130,000 | $130,000 |
Applicable at age 50
| Plan Limits | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| 401(k), 403(b), and 457 Plan Catchup Contributions | $6,500.00 | $6,500.00 | $6,500 | $6,500 | $6,000 |
| SIMPLE Plan Catchup Contributions | $3,000.00 | $3,000.00 | $3,000 | $3,000 | $3,000 |
| IRA Catchup Contributions | $1,000.00 | $1,000.00 | $1,000 | $1,000 | $1,000 |
"Key Employee" Definition
| Plan Limits | 2022 | 2021 | 2020 | 2019 | 2018 |
|---|---|---|---|---|---|
| Officer | $200,000 | $185,000 | $180,000 | $175,000 | $170,000 |
| 1% Owner | $150,000 | $150,000 | $150,000 | $150,000 | $150,000 |
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The Tristar Pension Consulting team is ready to help you begin your journey on the road to retirement. We will help you navigate the route for a smooth ride to and through retirement.
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