2024 401(k) Contribution Limit Updates
The Internal Revenue Service (IRS) announced 2024 adjustments for retirement plan contribution limits.
401(k) and 403(b) plans:
Employee 401(k) contributions:
- 2023: $22,500
- 2024: $23,000
The catch-up contribution limit for Plan participants aged 50 or older remains at $7,500 for the 2024 tax year.
Employer plus employee contributions:
- 2023: $66,000
- 2024: $69,000
457(b) plans:
Employee and employer deferrals into 457(b) plans:
- 2023: $22,500
- 2024: $23,000
The age 50 catch-up contribution limit for participants in 457(b) plans remains at $7,500 for the tax year 2024.
Individual Retirement Accounts (IRA):
IRA contributions:
- 2023: $6,500
- 2024: $7,000
The age 50 catch-up for IRA contributions remains at $1,000 for tax year 2024.
Eligibility
The income ranges for determining eligibility to make contributions to a traditional IRA or a Roth IRA have changed.
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 a married couple filing jointly, if the IRA contributor 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.
If you have any questions or need help communicating these changes to employees, please contact us. We'll continue to monitor and communicate regulatory changes to help you succeed in benefits management.
This blog is up to date as of November 2023 and has not been updated for changes in the law, administration or current events.
