Retirement Plan Contribution Limits for 2024

The IRS just announced contribution limits for qualified retirement plans for 2024.  

Keep reading below to find out exactly how much you can contribute for 2024, and start making plans now to do what you can to max out your retirement savings next year.

401(k) Retirement Plan Contribution Limits for 2024

401(k)s

Employees with 401(k)s, 403(b)s, most 457 plans, and federal Thrift Savings Plans can contribute up to $23,000, up from $22,500.

For those ages 50 and older, the 401(k) catch-up contribution remains at $7,500 for 2024 – for a total of $30,500.

Solo 401(k)s 

If you have a Solo 401(k), otherwise known as a Self-Employed 401(k) or Individual 401(k), the contribution limit rises to $69,000. The catch-up contribution remains $7,500 for those 50 or above.

IRA Contribution Limits for 2024

IRAs 

IRA contributors will be able to invest up to $7,000 in 2024, up from $6,500, with the catch-up contribution limit for those 50 or older set at $8,000.

Expert Tip: You can contribute the maximum for 2023 until Monday, April 15, 2024. If you have an IRA, plan now to maximize the contribution limit for 2023 before April next year!  

SEP IRAs

Contribution limits for SEPs, or Simplified Employee Pensions, in 2024 is 25% of up to $345,000 of compensation and is limited to a maximum annual contribution of $69,000.

SIMPLE IRAs

The amount you can contribute to a SIMPLE retirement account is increased to $16,000, up from $15,500. The catch-up contribution limit for employees 50 and over who participate in SIMPLE plans remains $3,500 for 2024.

Deductible IRA Phaseouts for 2024

• For singles and heads of household who are covered by a workplace retirement plan, such as a 401(k), and contribute to a traditional IRA, the phaseout range increased to between $77,000 and $87,000, up from between $73,000 and $83,000 in 2023.

• For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $123,000 and $143,000, up from between $116,000 and $136,000. 
• If you contribute to an IRA but are not covered by a workplace retirement plan and are married to someone who is, the phase-out range is increased to between $123,000 and $143,000, up from between $116,000 and $136,000. 

• For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

Expert Tip: You can still contribute to an IRA even if you earn too much – it’s just nondeductible.

Roth IRA Phaseouts for 2024
The income phaseout range for the Roth will increase in 2024. 

• The income phase-out range for taxpayers making contributions to a Roth IRA is increased to between $146,000 and $161,000 for singles and heads of household, up from between $138,000 and $153,000.  
• For married couples filing jointly, the income phase-out range is increased to between $230,000 and $240,000, up from between $218,000 and $228,000.  
• The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

Saver’s Credit Limits for 2024

For low and moderate income workers, the new Saver’s Credit (also known as the Retirement Savings Contributions Credit) limit is increasing to $76,500 for married couples filing jointly, up from $73,000.

For heads of household, the 2024 limit is $57,375, up from $54,750.

For singles and married couples filing separately, the limit is $38,250, up from $36,500.

Additional Changes Made under SECURE Act 2.0

In its announcement, the IRS included additional changes that come due to the Secure Act 2.0: 

• The limitation on premiums paid with respect to a qualifying longevity annuity contract to $200,000. For 2024, this limitation remains $200,000. 
• Added an adjustment to the deductible limit on charitable distributions. For 2024, this limitation is increased to $105,000, up from $100,000. 
• Added a deductible limit for a one-time election to treat a distribution from an individual retirement account made directly by the trustee to a split-interest entity. For 2024, this limitation is increased to $53,000, up from $50,000.

Have questions about your 401(k) performance? Book a complimentary 15-minute 401(k) Strategy Session with one of our advisors. 

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