IRS Announces 2024 Contribution Limits for Retirement Accounts

The IRS recently released updated contribution limits for 2024. Knowing the limits for different types of accounts can help you maximize your retirement savings - it may be time for you to log into your retirement plan account and increase your contribution rate!

Here are the new 2024 limits so you can stay on top of your contributions:

• 401(k) and 403(b) Deferral Limit: Increases to $23,000 from $22,500 (additional catch-up if you are over age 50 stays the same at $7,500 for a total of $30,500).  

• IRA Limit (including Roth IRAs): Increases to $7,000 in 2024, up from $6,500 (the catch-up for those over the age of 50 is still with an additional $1,000 for a total of $8,000).

• SEP IRAs: The limit in 2023 was $66,000 and increases to $68,000 in 2024 (with a cap of 25% of your net earnings - see your accountant or tax professional for more details).

• SIMPLE Retirement Accounts: increases to $16,000 (up from $15,500).

• Profit Sharing Accounts: Increases to $68,000 for 2024 ($75,500 including the catch-up contribution).

The Roth IRA income phase-out range for single filers and heads of household in 2024 will be between $146,000 and $161,000, up from $138,000 – $153,000 in 2023. The 2024 Roth IRA income phase-out range for married couples filing jointly will be between $230,000 to $240,000, up from between $218,000 and $228,000 in 2023.

With some careful planning, you can make sure you maximize every dollar you're bringing home. Also, as usual, make sure to check with your tax professional for questions regarding your specific situation.

This information is believed to be accurate at the time of publication. Please refer to the IRS website for official information and refer to your tax professional for individual matters.