IRS just announced increases to retirement plan contributions for 2024. We will see some large increases, much due to the high level of inflation.
Below are the increases per the IRS for 2024:
Type of Account | 2023
Limit | 2024 Limit |
Traditional IRA | $6,500 | $7,000 |
Roth IRA | $6,500 | $7,000 |
HSA –
Single | $3,850 | $4,150 |
HSA – Family | $7,750 | $8,300 |
SIMPLE IRA | $15,500 | $16,000 |
SEP IRA | $66,000 | $69,000 |
Most 401(k), 403(b), 457 | $22,500 | $23,000 |
Total Defined Contribution | $66,000 | $69,000 |
*Depending on Defined Contribution (401k), higher limits maybe allowed
*Some of the above have income requirements to meet
limits above
The IRS allows a “catch up” contributions for IRA’s of an additional $1,000 to those 50 and over, $3,500 for SIMPLE IRA and an extra $7,500 in a 401(k) and 403(b).
IRA’s have income limits for who can contribute and those
income phase-out ranges have also been increase.
Filer | 2023 Phase Out | 2024 Phase Out |
Traditional
IRA | | |
Single Filer w/ Plan @ work | $73,000-$83,000 | $77,000-$87,000 |
Married Joint w/
Plan @ work | $116,000-$136,000 | $123,000-$143,000 |
Married Joint Only 1 w/ Plan Wk | $218,000-$228,000 | $230,000-$240,000 |
Roth IRA | | |
Single and Head of Household | $138,000-$153,000 | $146,000-$161,000 |
Married Joint | $218,000-$228,000 | $230,000-$240,000 |
As always, would love to talk with you about how to implement these changes into your financial plan to provide a clear path to your financial goals.
**This is
not deemed to be Tax or Legal Advise**
Source:
https://www.wsj.com/buyside/personal-finance/401k-ira-contribution-limits-2024-444f7273
https://www.fidelity.com/learning-center/smart-money/hsa-contribution-limits
https://www.irs.gov/newsroom/401k-limit-increases-to-23000-for-2024-ira-limit-rises-to-7000#:~:text=The%20amount%20individuals%20can%20contribute%20to%20their%20SIMPLE%20retirement%20accounts,longevity%20annuity%20contract%20to%20%24200%2C000.
https://www.nerdwallet.com/article/investing/what-is-a-sep-ira#:~:text=SEP%20IRA%20contribution%20limits&text=With%20a%20SEP%20IRA%2C%20you,2023%20and%20%2469%2C000%20in%202024
https://www.irs.gov/newsroom/401k-limit-increases-to-23000-for-2024-ira-limit-rises-to-7000
