2024 Internal Revenue Service (IRS) Updated Retirement Plans Contribution Limits

In 2024, the Internal Revenue Service (IRS) has announced updated contribution limits for retirement plans:

• The contribution limit for 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.
• The annual contribution limit for Individual Retirement Arrangements (IRA) has risen to $7,000 from $6,500.
• The catch-up contribution limit for employees aged 50 and over in 401(k), 403(b), and most 457 plans, along with the federal government’s Thrift Savings Plan, remains $7,500 for a total contribution of up to $30,500 for those aged 50 and older.
• The catch-up contribution limit for employees aged 50 and over in SIMPLE plans remains $3,500 for 2024.
• Income ranges for deductible contributions to traditional IRAs, contributions to Roth IRAs, and eligibility for the Saver’s Credit have increased.
• The phase-out range for single taxpayers covered by a workplace retirement plan is now between $77,000 and $87,000.
• For married couples filing jointly, the phase-out range is between $123,000 and $143,000 if the contributing spouse is covered by a workplace retirement plan.
• IRA contributors not covered by a workplace retirement plan but married to someone who is covered have a phase-out range of $230,000 to $240,000.
• For a married individual filing separately and covered by a workplace retirement plan, the phase-out range remains between $0 and $10,000.
• Roth IRA contribution phase-out ranges have increased for singles and heads of household ($146,000 to $161,000) and for married couples filing jointly ($230,000 to $240,000).
• The Saver’s Credit income limit is $76,500 for married couples filing jointly, $57,375 for heads of household, and $38,250 for singles and married individuals filing separately.
• The contribution limit for SIMPLE retirement accounts has been raised to $16,000.

Under the SECURE 2.0 Act of 2022, additional changes include:

• The limitation on premiums paid for a qualifying longevity annuity contract remains at $200,000 for 2024.
• An adjustment to the deductible limit on charitable distributions, which is increased to $105,000 for 2024.
• A deductible limit for a one-time election to treat a distribution from an individual retirement account made directly to a split-interest entity, increased to $53,000 for 2024.