New Retirement Contribution Limits for 2024
The Internal Revenue Service has released new limits for the coming year, effective January 1, 2024.
Individual Retirement Accounts (IRAs)
IRA contribution limits are up $500 in 2024 to $7,000. Catch-up contributions for those over age 50 remain at $1,000, bringing the total limit to $8,000.
Roth IRAs
The income phase-out range for Roth IRA contributions increases to $146,000 to $161,000 for single filers and heads of household, a $8,000 increase. For married couples filing jointly, phase-out will be $230,000 to $240,000, a $12,000 increase. Married individuals filing separately see their phase-out range remain at $0-10,000.
Workplace Retirement Accounts
Those with 401(k), 403(b), 457 plans, and similar accounts will see a $500 increase for 2024, the limit rising to $23,000. Those aged 50 and older will now have the ability to contribute an extra $7,500, bringing their total limit to $30,500.
SIMPLE Accounts
A $500 increase in limits for 2024 gives individuals contributing to this incentive match plan a $16,000 stop light.
Other Changes
In addition to changes in contributions limits, the IRS also announced several other changes for 2024, including an increase to the annual exclusion for gifts to $18,000 per person and an increase to the estate tax exclusion threshold.
Keep in mind that this update is for informational purposes only, so consult with your tax professional before making any changes in anticipation of the new 2024 levels. You can also contact your trusted financial professional, and they can provide you with information about the pending changes.
This is not a recommendation and is not intended to be taken as a recommendation. This material was prepared for general distribution and is not directed to a specific individual.
LPWM LLC does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisers.
