Retirement Plan Contribution Limits 2024
The Internal Revenue Service (IRS) has recently announced the new cost of living adjustments (COLA) for the 2024 tax year. These adjustments are crucial for anyone looking to optimize their retirement savings, as they directly affect the contribution limits for various retirement plans and Individual Retirement Accounts (IRAs). Understanding these changes is essential for effective financial planning.
The updated contribution limits for 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan, along with the new IRA contribution limits, are detailed below. We encourage you to review the updated 2024 retirement plan and IRA contribution limits carefully and consider adjusting your savings strategies accordingly. By doing so, you can better prepare for a financially secure retirement.
We understand that navigating retirement planning can be complex, and keeping up with the latest IRS guidelines is crucial. Therefore, we are committed to providing you with the most current and comprehensive information on retirement plan limits and strategies. Check back regularly for more updates and insights to help you maximize your retirement savings.
Item | 2024 | 2023 |
401(k) and 403(b) Employee Deferral Limit1 | $23,000 | $22,500 |
457 Employee Deferral Limit | $23,000 | $22,500 |
Catch-Up Contribution2 | $7,500 | $7,500 |
Defined Contribution Dollar Limit | $69,000 | $66,000 |
Defined Benefit Dollar Limit | $275,000 | $265,000 |
Compensation Limit3 | $345,000 | $330,000 |
Social Security Taxable Wage Base | $168,600 | $160,200 |
SEP IRA Maximum Contribution Limit | $69,000 | $66,000 |
SEP IRA Earnings Limit | $750 | $750 |
SIMPLE Salary Deferral Limit | $16,000 | $15,500 |
SIMPLE Catch-Up Contribution Limit (Age > 50) | $3,500 | $3,500 |
IRA Contribution Limit | $7,000 | $6,500 |
IRA Catch-Up Contribution (Age > 50) | $1,000 | $1,000 |
Traditional IRA Deduction Phaseouts
Item | 2024 | 2023 |
MFJ – One Spouse is an Active Participant | $230,000 to $240,000 | $218,000 to $228,000 |
MFJ – Both Taxpayers are Active Participants | $123,000 to $143,000 | $116,000 to $136,000 |
Single – Taxpayer is an Active Participant | $77,000 to $87,000 | $73,000 to $83,000 |
Married – Filing Separately | $0 to $10,000 | $0 to $10,000 |
Roth IRA Contribution Phaseouts
Item | 2024 | 2023 |
MFJ | $230,000 to $240,000 | $218,000 to $228,000 |
Single | $146,000 to $161,000 | $138,000 to $153,000 |
MFS | $0 to $10,000 | $0 to $10,000 |
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