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

1Employee deferrals to all 401(k) and 403(b) plans must be aggregated for purposes of this limit. A lower limit applies to SIMPLE Plans. 2Available to employees age 50 or older during the calendar year. A lower limit applies to SIMPLE Plans. 3All compensation from a single employer (including all members of a controlled group) must be aggregated for purposes of this limit.

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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