Correction: to 2024, understanding the contribution limits for Individual Retirement Accounts

Correction: to 2024, understanding the contribution limits for Individual Retirement Accounts

January 12, 2024

As we all know mistakes happened, its not the mistake that matters it’s how you handle what comes next. I recently posted about the 2024 contribution limits and I mistakenly used last years when comparing the two. Please see the correct limits set by the federal government.


The Internal Revenue Service (IRS) has announced changes to the contribution limits for various retirement plans in 2024. Here are the key highlights:

  1. 401(k) Plans and Similar Accounts:

    • The contribution limit for employees participating in 401(k), 403(b), and most 457 plans, as well as the federal government's Thrift Savings Plan, has increased to $23,000 from $22,500 in 2023.
  2. Individual Retirement Accounts (IRA):

    • The limit on annual contributions to an IRA has increased to $7,000, up from $6,500.
    • The catch-up contribution limit for individuals aged 50 and over remains $1,000 for 2024.
  3. Catch-Up Contributions:

    • The catch-up contribution limit for employees aged 50 and over in 401(k), 403(b), and most 457 plans, as well as the federal government's Thrift Savings Plan, remains $7,500 for 2024.
    • Participants aged 50 and older in these plans can contribute up to $30,500 in 2024.
  4. Income Ranges and Phase-Outs:

    • Income ranges for deductible contributions to traditional IRAs, contributions to Roth IRAs, and eligibility for the Saver's Credit have all increased for 2024.
    • Phase-out ranges for traditional IRA deductions have been adjusted based on filing status and income.
  5. Saver's Credit:

    • The income limit for the Saver's Credit for low- and moderate-income workers has been increased.
  6. SIMPLE Retirement Accounts:

    • The contribution limit for SIMPLE retirement accounts has increased to $16,000, up from $15,500.
  7. SECURE 2.0 Changes:

    • Limitation on premiums for qualifying longevity annuity contracts remains at $200,000.
    • Deductible limit on charitable distributions increased to $105,000 from $100,000.
    • Deductible limit for a one-time election to treat a distribution from an IRA made directly to a split-interest entity increased to $53,000 from $50,000.

These changes aim to reflect cost-of-living adjustments and provide individuals with updated contribution limits and guidelines for retirement planning in the year 2024.

Details on these and other retirement-related cost-of-living adjustments for 2024 are in Notice 2023-75PDF, available on IRS.gov.


https://www.irs.gov/newsroom/401k-limit-increases-to-23000-for-2024-ira-limit-rises-to-7000#:~:text=Highlights%20of%20changes%20for%202024,to%20%247%2C000%2C%20up%20from%20%246%2C500.