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Retirement plan contribution limits are increasing for 2024.

December 27, 2023

IRA & Roth IRA

In 2024, the contribution limit for traditional and Roth IRAs is increasing to $7,000 for workers under age 50. Those attaining age 50 (and everyone over age 50) in 2024 can make a $1,000 catch-up contribution, bringing the total allowable contribution to $8,000.  The modified adjusted gross income (MAGI) limits for contributions are as follows: single filers $161,000 and married joint filers $240,000. There is a phase-out schedule before the income caps are reached. If you are worried that your income might be approaching the cap limits, contact us for more information.

SIMPLE IRA

For those with an employer sponsored SIMPLE IRA, the employee contribution limit increases to $16,000, with an additional $3,500 catch-up contribution for those attaining age 50, and older.  

401(k)

Individuals with 401(k) plans can benefit from an increase in the contribution limit, now set at $23,000 for 2024. The catch-up contribution for employees age 50 and over remains at $7,500 for 2024. Those people participating in 401(k), 403(b), and most 457 plans in 2024 can contribute a maximum amount of $30,500.