IRS limits

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.).

Annual compensation limit

2023 maximum
2024 maximum
Annual compensation [Section 401(a)(17)] limit

The annual compensation limit (IRS limit) under section 401(a)(17) of the Internal Revenue Code affects the following benefits:

  • Defined Benefit Pension Plan
  • Retirement Savings Plan of the Presbyterian Church (U.S.A.)
  • Temporary Disability Plan
  • Long-Term Disability Plan
  • Supplemental disability benefits

Retirement 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.

Disability benefits

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.

Annual maximum contributions

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:

  • Retirement Savings Plan
  • Tax-advantaged accounts
  • Parking and transit

Retirement Savings Plan

2023 maximum
2024 maximum
Annual contributions (pretax and Roth after-tax) $22,500
Long-service catch-up contributions
Maximum annual contributions $66,000$69,000
Age 50+ catch-up contributions
Lifetime (15-year/special) catch-up contributions $3,000$3,000

Tax-advantaged accounts

2023 maximum
2024 maximum
Healthcare flexible spending account (FSA) $3,050$3,200
Dependent care flexible spending account (FSA) $5,000 (per household)
$2,500 (single; married, filing single)
Health savings account (HSA) (with high deductible health plan) $3,850 (single)
$7,750 (married, filing jointly)
$4,150 (self-only coverage)
$8,300 (family coverage)
HSA age 55+ catch-up contributions $1,000$1,000
Healthcare FSA carryover

Parking and transit

2023 maximum
2024 maximum
Parking and transit$300 per month$315 per month