The IRS released their revised 2024 Contribution Limits for Retirement Plans, which is important for every individual saver or retirement plan sponsor. The contribution limits are subject to adjust for inflation annually, but they don't always increase if inflation is mute. However, given the recent high inflation rates, the retirement account contribution limits jumped considerably for 2024.
IRA Contribution Limits for 2024
For anyone saving for retirement with a traditional or Roth IRA, the 2024 limit on annual contributions to their account goes up $500 – from $6,500 this year to $7,000 next year. The IRA "catch-up" contribution for savers over age 50 is not subject to an annual cost-of-living adjustment and stays at $1,000 for 2024 (for a total 2024 contribution limit of $8,000 if you're at least 50 years old).
2024 Contribution Limits for 401(k) and Other Employer-Sponsored Plans
Employees who are saving for retirement with a 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan (TSP) can contribute up to $23,000 to those plans in 2024. That's a $500 increase over the contribution limit increases from the prior year. The "catch-up" contribution limit for employees age 50+ stays at $7,500 for 2024 – for a total limit of $30,500.
The contribution limit for a SIMPLE IRA, which is a retirement plan designed for small businesses, is also increased for 2023. It jumps from $15,500 to $16,000 next year. The catch-up contribution limit for workers age 50+ who participate in a SIMPLE plan remains at $3,500.
Sandbox Financial Partners created this 2024 Contribution Limits for Retirement Plans chart for educational and informational purposes only. It is not intended as ERISA, tax, legal or investment advice.
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