PERAC Memo #4 - 2024: 2024 Limits under Chapter 46 of the Acts of 2002
2024 Limits under Chapter 46 of the Acts of 2002
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This memo publishes the 2024 federal compensation and benefit limits applicable to Massachusetts public retirement systems under Chapter 46 of the Acts of 2002. The IRC § 401(a)(17) compensation limit for 2024 is $345,000, and the IRC § 415 annual benefit limit is $275,000 for a member retiring at age 65 (reduced for retirements before age 62). These limits are indexed annually and affect only the highest-paid employees; most members will not be impacted.
Full Text
Memorandum Memorandum PERAC Memo #04: 2024 Limits under Chapter 46 of the Acts of 2002 Date: 01/09/2024 Referenced Sources: PERAC Website PERAC Memo #04, 2024
To All Retirement Boards: TO: All Retirement Boards
FROM: John W. Parsons, Esq., Executive Director
RE: 2024 Limits under Chapter 46 of the Acts of 2002
DATE: January 9, 2024
Prior PERAC Memos (# 27/2002, # 45/2002, and #17/2003) briefly outlined Chapter 46 of the Acts of 2002. This law brought the Massachusetts Retirement Law into compliance with Federal Limitations on the compensation used to calculate retirement allowances and the dollar amounts of retirement allowances. This provision generally affects only the highest paid employees and will not apply to most retirement system members.
The regulations regarding Section 401(a)(17) (compensation limit) and Section 415 (benefit limit) of the Internal Revenue Code are quite complex and can vary under individual circumstances. The general compensation limit for 2024 is $345,000. The general benefit limit for 2024 is $275,000 per year for a member retiring at age 65 although this limit is generally reduced for retirement prior to age 62. These limitations are indexed each year.
Please contact John Boorack if you have any questions.