2024 IRS Retirement Account Contribution Limits

The IRS has announced the contribution limits for retirement accounts in 2024. Here's what you need to know about saving for retirement next year:

Traditional and Roth IRA Contribution Limits

The limit on annual contributions to an Individual Retirement Arrangement (IRA) was increased to $7,000 for 2024. The additional catch-up contribution limit for individuals aged 50 and over is $1,000.

401-K Contribution Limits

The IRS has increased the 401-K plan contribution limits for 2024, allowing employees to defer up to $23,000 into workplace plans, up from $22,500 in 2023.The catch-up contributions for savers over the age of 50 will remain unchanged at $7,500. The new amounts also apply to 403(b) plans, most 457 plans and the federal government Thrift Savings Plans.

SEP IRA and SIMPLE IRA Limits

The SEP IRA contribution limit is increased to $69,000, and the SIMPLE IRA limit is increased from $15,500 to $16,000. The catch up contribution limits for employees 50 years and over remains unchanged at $3,500 for 2024.

Solo 401(k) Contribution Limits

For self-employed individuals, the limit on annual contributions to a Solo 401(k) is increased to $69,000. The catch-up contribution limit remains $7,500.

Knowing the latest IRS retirement account limits can help you maximize your tax-advantaged retirement contributions in 2024.

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