2024 Retirement Plan Contribution Limits
“Don’t save what is left after spending; spend what is left after saving.” -Warren Buffett
By Andrew J. Tapparo, MSF, RICP®
As we kick off the new year, it's important for savers to be aware of the updated retirement plan contribution limits for 2024. These limits determine how much you can contribute to tax-advantaged accounts like 401(k)s, IRAs, and other plans. Let's take a look at what's changing in 2024:
401(k), 403(b), Most 457 Plans, and Thrift Savings Plan
- Employee Contribution Limit: $23,000 (up from $22,500 in 2023)
- Catch-Up Contribution (age 50+): $7,500 (no change from 2023)
- Total Contribution Limit (employer + employee): $69,000 (up from $66,000 in 2023)
Individual Retirement Accounts (IRAs)
- Traditional and Roth IRA Contribution Limit: $7,000 (up from $6,500 in 2023)
- Catch-Up Contribution (age 50+): $1,000 (no change from 2023)
Income Phaseout Range for Roth IRA Contributions:
- Single/Head of Household: $146,000 - $161,000 (up from $138,000 - $153,000 in 2023)
- Married Filing Jointly: $230,000 - $240,000 (up from $218,000 - $228,000 in 2023)
SIMPLE IRAs
- Employee Contribution Limit: $16,000 (up from $15,500 in 2023)
- Catch-Up Contribution (age 50+): $3,500 (no change from 2023)
The increases to the contribution limits for 2024 are designed to help Americans save more for retirement and take advantage of tax-deferred growth. Be sure to review your current contributions and adjust as needed to maximize your savings potential for 2024.
As always, it's a good idea to consult a qualified financial advisor who can provide personalized guidance on your retirement planning strategy. They can help ensure you're taking full advantage of all available savings opportunities.
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