global Tax New Retirement Plan Contribution Limits for 2024 November 02, 2023 401k contribution limits have changed for this Year. Take a look at some adjustments to the phase-out ranges and contribution limits for 2024. The Internal Revenue Service has issued their annual cost of living adjustments for 401(k) and IRAs, Pension plans, and other retirement related matters. The limits Individual Retirement Account (Roth and Traditional) Contribution Limits202420232022IRA Contribution Limit$7,000$6,500$6,000IRA Catch-up Contribution$1,000$1,000$1,000 401(k), 457 and 403(b) Contribution Limits202420232022401(k), 457 and 403(b) maximum annual elective deferral limit$23,000$22,500$20,500401(k), 457 and 401(b) catch up contribution limit for those 50 and over$7,500$7,500$6,500 The amount of your compensation that can be taken into account when determining employer and employee contributions is $340,000 for 2024. Here’s how that number has changed through the years. 202420232022Annual Compensation Limit$345,000$330,000$305,000 SIMPLE- Savings Incentive Match Plan for Employees Contribution Limits202420232022SIMPLE employee deferrals$16,000$15,500$14,000SIMPLE catch up deferrals$3,500$3,500$3,000 Simplified Employee Pension (SEP IRA) Contribution Limits202420232022SEP annual compensation limit$345,000$330,000$305,000SEP minimum compensation$750$750$650SEP maximum contribution$69,000$66,000$61,000 Phase-out ranges for 2024 Traditional IRA MAGI Limits202420232022Married filing jointly; a spouse who participates in an employer-sponsored plan$123,000- $143,000$116,000- $136,000$109,000- $129,000Married filing jointly; a spouse who does not participate in an employer-sponsored plan$230,000- $240,000$218,000- $228,000$204,000- $214,000Single or Head of Household$77,000- $87,000$73,000- $83,000$68,000- $78,000 For Roth IRAs, if your MAGI falls within the applicable range, you can make a partial contribution, but if it exceeds the top of the range, you are not allowed to make a contribution. Roth IRA MAGI Limits202420232022Married filing jointly$230,000- $240,000$218,000- $228,000$204,000- $214,000Single or Head of Household$146,000- $161,000$138,000- $153,000$129,000- $144,000 What is the social security wage base for 2024? 202420232022Social Security Wage Base$168,600$160,020$147,000 Interested in learning more about tax-advantaged retirement saving strategies? Contact us for more information.
