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2024 Retirement Plan Contribution Limits

January 12, 2024

The IRS recently announced an increase in retirement account contributions, allowing savers to put away extra money in 2024. The adjustments are made based on inflation figures. The contribution limit for workplace retirement accounts is being increased from $22,500 to $23,000, and includes 401(k)s, 403(b)s, & some 457 plans and the thrift savings plan. Although retirement contributions are changing, catch-up contributions are staying the same; Savers aged 50 and older can contribute an additional $7,500, allowing their total contribution to now total $30,500.


The amount people can contribute to Individual Retirement Accounts (IRAs) is increasing to $7,000 a year. The catch-up contribution amount for IRAs is not subject to an annual cost-of-living adjustment, and will stay at $1,000 allowing those aged 50 or older to contribute $8,000 next year. The Contribution limit for SIMPLE IRAs has also increased for 2024, jumping from $15,500 to $16,000. The catch-up contribution for those aged 50 and older is an additional $3,500. Lastly, the SEP IRA limit increases to $69,000 or 25% of compensation, whichever is less.


Income ranges to be eligible to contribute to ROTH IRAs are increasing in 2024. The new income phase outs are between $146,000 and $162,000 for singles and head of households and $230,000 to $240,000 for married couples filing jointly. Phaseouts mean that if you fall within this range, you can contribute but not to the maximum.


 


If you'd like more information on the 2024 cost-of-living adjustments for retirement accounts, see the IRS Notice