Each year, the federal government publishes compensation and maximum contribution amounts permitted for benefit plans, including those offered through the Benefits Plan of the Presbyterian Church (U.S.A.).
|
| 2023 maximum | 2024 maximum |
|---|---|---|
| Annual compensation [Section 401(a)(17)] limit | $330,000 | $345,000 |
The annual compensation limit (IRS limit) under section 401(a)(17) of the Internal Revenue Code affects the following benefits:
For the Defined Benefit Pension Plan and the Retirement Savings Plan, the annual compensation limit is the maximum amount of compensation each year that can be used to calculate a person’s retirement benefit.
This limit also influences the pension participation basis, used to calculate pension credits under the Defined Benefit Pension Plan. The pension participation basis is the greater of an employee’s effective salary or 25% of the congregational ministers’ median salary, but no more than the IRS limit.
For the Temporary Disability and the Long-Term Disability plans, benefits generally are equal to 60% of effective salary, up to the IRS limit. Supplemental disability benefits can replace 60% of an employee’s effective salary in excess of $110,000, up to the IRS limit.
The maximum contributions allowed for the current and prospective tax year are updated as the federal government releases benefit maximums throughout the year. For additional information, visit the IRS website.
The annual maximum contribution affects the following benefits:
|
| 2023 maximum | 2024 maximum |
|---|---|---|
| Annual contributions (pretax and Roth after-tax) | $22,500 | $23,000 |
| Long-service catch-up contributions | $3,000 | $3,000 |
| Maximum annual contributions | $66,000 | $69,000 |
| Age 50+ catch-up contributions | $7,500 | $7,500 |
| Lifetime (15-year/special) catch-up contributions | $3,000 | $3,000 |
|
| 2023 maximum | 2024 maximum | 2025 maximum |
|---|---|---|---|
| Healthcare flexible spending account (FSA) | $3,050 | $3,200 | Announced fall 2024 |
| Dependent care flexible spending account (FSA) | $5,000 (per household) $2,500 (single; married, filing single) | $5,000 | Announced fall 2024 |
| Health savings account (HSA) (with high deductible health plan) | $3,850 (self-only coverage) $7,750 (family coverage) | $4,150 (self-only coverage)
$8,300 (family coverage) | $4,300 (self-only coverage) $8,550 (family coverage) |
| HSA age 55+ catch-up contributions | $1,000 | $1,000 | $1,000 |
| Healthcare FSA carryover
| $610 | $640 | Announced fall 2024 |
|
| 2023 maximum | 2024 maximum |
|---|---|---|
| Parking and transit | $300 per month | $315 per month |