New Retirement Plan Contribution Limits for 2024

IRS just announced new limits for retirement plans.  Keep these in mind as you are evaluating your savings next year. 

New Limits for 2024 Retirement Plans 

Regarding 401(k), 403(b), 457 plans, and Thrift Savings Plan: 

The contribution limit for 2024 has increased to $23,000, a rise from the previous year's $22,500. 

For individuals age 50 and older, the catch-up contribution remains at $7,500, resulting in a maximum contribution of $30,500 for 2024. 

For Traditional and Roth IRAs: 

The annual contribution limit has been raised to $7,000, up from $6,500 in 2023. 

Individuals aged 50 and above may continue with an additional catch-up contribution of $1,000, resulting in a total contribution of $8,000. 

It is also essential to note the modifications in the income phase-out range for Roth IRA contributors: For single filers and heads of household, the range is now between $146,000 and $161,000. For those married and filing jointly, the updated range is between $230,000 and $240,000.