401(k) Contribution Limits 2024

The IRS has announced that the 401(k) contribution limit for 2024 will be $23,000, up from $22,500, the 401(k) contribution limits in 2023. The 401(k) contribution boost for 2024 is lower than the $2,000 jump that occurred for 2023, but still enough for future retirees to prepare their nest egg.

Catch-up contributions for employees age 50 and older, who participate in 401(k), 403(b), most of 457 plans, and Thrift Savings Plan, will remain unchanged at $7,500 in 2024.

Therefore, participants in these retirement plans can contribute up to $30,500, starting in 2024. The catch-up contribution limit for employees 50 and over participating in SIMPLE plans remains $3,500 for 2024.

If you are able to contribute the maximum amount to your 401(k) plan, you can take advantage of tax-deferred growth and live comfortably in retirement.

Phase‑out ranges for 2024:

For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to between $77,000 and $87,000, up from between $73,000 and $83,000.
For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $123,000 and $143,000, up from between $116,000 and $136,000.
For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to between $230,000 and $240,000, up from between $218,000 and $228,000.
For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

The income limit for the Saver’s Credit (Retirement Savings Contributions Credit):

$76,500 for married couples filing jointly, up from $73,000;
$57,375 for heads of household, up from $54,750;
$38,250 for singles and married individuals filing separately, up from $36,500.

2024 Changes under SECURE 2.0:

The limitation on premiums paid with respect to a qualifying longevity annuity contract to $200,000. For 2024, this limitation is still $200,000.
Added an adjustment to the deductible limit on charitable distributions. For 2024, this limitation is increased to $105,000, up from $100,000.
Added a deductible limit for a one-time election to treat a distribution from an individual retirement account made directly by the trustee to a split-interest entity. For 2024, this limitation is increased to $53,000, up from $50,000.

Defined Benefit Plan Limits 2024

The maximum annual benefit that may be provided through a defined benefit plan is $275,000, up from $265,000.

For a participant who separated from service before Jan. 1, the participant’s limitation under a defined benefit plan under section 415(b)(1)(B) is computed by multiplying the participant’s compensation limitation, as adjusted through 2023, by 1.0351, the IRS said.

IRA Contribution Limits 2024

IRA contribution limits increased for 2024, with savers now able to put away $7,000, up from $6,500 in 2023. Catch-up contributions remain at $1,000.

More Americans may be eligible for Roth IRAs in 2024, with the adjusted gross income phaseout range rising to $146,000-$161,000 for single filers and heads of household, up from $138,000-$153,000 in 2023.