The IRS Increased Retirement Contribution Limits for 2024
The IRS announced the new 2024 retirement contribution limits for 401(k) plans, IRAs and other accounts last year, which include increases. This is a great opportunity for retirement savers to increase their savings rate this year. So, let’s take a look.
The employee contribution limit for 401(k)s will be increasing this year by $500, to $23,000, up from $22,500 in 2023, and catch-up contributions for those age 50 and older will remain unchanged at $7,500, so $30,500. These new limits apply to 403(b) plans as well and some TSP and 457 plans. Solo 401(k)s limit for 2024 is $69,000 and $76,500 for those over 50 years old.
The IRS also increased contribution limits for IRAs, increasing the limit for savers to $7,000 in 2024, up from $6,500 in 2023 for traditional and Roth savers. Catch-up contributions will remain unchanged at $1,000, so $8,000 for those over 50 years old. Simple IRA contribution limit will be $16,000.
Another feature to take a look at is the income phaseout range for Roth IRAs in 2024. The IRS increased the adjusted gross income phaseout range rising to between $146,000 and $161,000 for single individuals and heads of households, up from between $138,000 and $153,000 in 2023, leaving more opportunity for individuals to qualify for a Roth IRA. For those married filing jointly, the phaseout range is between $230,000 – $240,000.
If you have any further questions on the retirement contribution limits for this year, adjusting your contribution, or jus on your personal financial situation, email info@shermanwealth.com or schedule a complimentary intro call here. Check out the IRS website for more information on the contribution limits.