Changes to your 2024 Retirement Plan Contributions

Changes to your 2024 Retirement Plan Contributions

January 03, 2024

The IRS has announced inflation-adjusted figures for retirement account savings for 2024 and I want to provide an update on popular retirement savings plans contribution limits.

In 2024, eligible individuals can contribute up to $7,000, up from $6,500, to their traditional Individual Retirement Accounts (IRAs) and Roth IRAs ($8,000 with a catch up contribution if you are age 50 or older)

For workplace retirement accounts (i.e. 401(k), 403(b), etc.), the contribution limit increased by $500 to $23,000. The catch-up contribution limit for employees aged 50 and over who participate in these plans remains the same from the 2023 limit of $7,500. So if you are over the age of 50, you can contribute as much as $30,500 into your 401(k) or 403(b).

Eligibility for Roth IRA contributions has also increased. Contribution limits are based on your filing status and modified AGI (adjusted gro ss income):

  • 2023 Roth IRA income phase out limits
    • Single: $138,000 - $153,000
    • Married Filing Jointly: $218,000 - $228,000
  • 2024 Roth IRA income phase out limits
    • Single: $146,000 - $161,000
    • Married Filing Jointly: $230,000 - $240,000

It’s not too late to make a 2023 contribution! The deadline for IRA contributions (Roth, Traditional or SEP) for the 2023 tax year is Monday April 15, 2023 or the day you file your taxes, whichever comes first.

I hope you found this update timely and informative. If you want to set up a time to discuss your tax situation or savings plan, don't hesitate to call or email me. You can also schedule a phone call or Zoom meeting by clicking here