2024 Plan Year Limits
(Employee Letter)

Summary

Use this form to communicate to eligible employees in a 401(k) plan the limits that apply broadly to their plan contributions in 2024. You can tailor the form to the specifics of the plan. This template includes practical guidance and drafting notes. This form reflects plan limits that you can communicate to eligible employees in a 401(k) plan which permits both pre-tax and Roth 401(k) contributions (under I.R.C. Section 402A) and permits eligible employees to make catch-up contributions under I.R.C. Section 414(v). The chart assumes that the plan definition of compensation (referred to as benefits-bearing pay) is limited to base pay. You should modify the reference to include other types of compensation based on the definition of plan compensation reflected in the formal plan document. For related content, see Cost of Living Adjustments Chart for Employee Benefit Plans, 401(k) Plans: Understanding the Rules, and SIMPLE 401(k) and SIMPLE IRA Plans. For a plan clause and a summary plan description clause that 401(k) plan sponsors can use to provide and communicate a "true-up" provision in a 401(k) plan, see True-up Clause for 401(k) Plan (Matching Contributions) and True-Up Clause for 401(k) Plan (Matching Contributions) (Summary Plan Description), respectively. For a notice that 401(k) plan sponsors can provide to highly- compensated employees where the plan may curtail their contributions to satisfy 401(k) plan nondiscrimination testing, see Highly Compensated Employee Contribution Curtailment (Employee Communication).