The IRS announces increased retirement plan contribution limits for 2024

 

On November 1, 2023, the Internal Revenue Service announced new contribution limits for various types of retirement plans. 

Here are the new limits for some of the more popular plans:

Plan Type

2023 Amounts

2024 Amounts

401(k), 403(b), and most 457

$22,500

$23,000

Traditional IRA

$6,500

$7,000

ROTH IRA

$6,500

$7,000

SIMPLE 401(k) or IRA

$15,500

$16,000

 

Taxpayers 50 years or older are allowed additional catch-up contributions as follows, unchanged from 2023:

Plan Type

2023 Amounts

2024 Amounts

401(k), 403(b), and most 457

$7,500

$7,500

Traditional IRA

$1,000

$1,000

ROTH IRA

$1,000

$1,000

SIMPLE 401(k) or IRA

$3,500

$3,500

 

The deductibility of traditional IRA contributions, and the ability to contribute to a ROTH IRA, can be limited by income if either or both the taxpayer and/or spouse are covered by a retirement plan at work. 

Here are the phase-out ranges for the deductibility of traditional IRA contributions for2024: 

 

  • Single taxpayer covered by workplace plan, deductibility of traditional IRA phases out with adjusted gross income between $77,000 and $87,000. 
  • Married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace plan, the phase-out range is between $123,000 and $143,000. 
  • Married couples filing jointly, if the IRA contributor is not covered by a workplace retirement plan but his or her spouse is, the phase-out range is between $230,000 and $240,000. 
  • For a married individual filing separately, the phase-out range is between $0 and $10,000.

 

The income phase-out ranges for taxpayers making ROTH IRA contributions is as follow for 2024: 

 

  • For single taxpayers and heads of household, between $146,000 and $161,000. 
  • For married couples filing jointly, the phase-out is between $230,000 and $240,000 of adjusted gross income 
  • Married filing separately remains at $0 to $10,000. 

 

If your adjusted gross income falls within the applicable phase-out range, you can make a deduction of less than the full amount. If your adjusted gross income is above the phase-out range, you cannot make a deductible traditional IRA contribution or make any ROTH IRA contribution.