The Internal Revenue Service has established contribution limits for the amount individuals can contribute to retirement plans in 2024.Individuals can contribute up to $23,000 next year, up from $22,500 in 2023 for 401(k), 403(b), and most 457 plans. The limit for annual contributions to an IRA rose to $7,000, from $6,500 with catch-up contributions for individuals more than 50 years old remains at $1,000 but includes an annual cost‑of‑living adjustment.
Technical guidance was also issued for cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items in 2024.
The catch-up contribution limit for employees aged 50 and over with 401(k), 403(b), and most 457 plans, as well as the federal government's Thrift Savings Plan, stays at $7,500 next year, meaning these individuals can contribute up to $30,500 next year. Savings Plan who are 50 and older can contribute up to $30,500, starting in 2024. The catch-up contribution limit for employees 50 and over who participate in Simple plans remains $3,500.
Phaseout limits were also set. For a single taxpayer with a workplace retirement plan, the phase-out range increases to from $77,000 to $87,000, up from between $73,000 and $83,000 in 2023.
For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $123,000 and $143,000, up from between $116,000 and $136,000.
For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to between $230,000 and $240,000, up from between $218,000 and $228,000.
For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.
