Now is the time to plan your 2024 retirement contributions to take full advantage of this tax benefit. Here are annual contribution limits for several of the more popular retirement plans:
| Plan | 2023 | 2024 | Change | |
| SIMPLE IRA |
Annual Contribution 50 or over catch-up |
$15,500 Add $3,500 |
$16,000 Add $3,500 |
+ $500 No Change |
| 401(k), 403(b), 457 and SARSEP |
Annual Contribution 50 or over catch-up |
$22,500 Add $7,500 |
$23,000 Add $7,500 |
+ $500 No Change |
| Traditional IRA |
Annual Contribution 50 or over catch-up |
$6,500 Add $1,000 |
$7,000 Add $1,000 |
+ $500 No Change |
| AGI Deduction Phaseouts: | Single; Head of Household
Joint nonparticipating spouse Joint participating spouse Married Filing Separately |
73,000 – 83,000
218,000 – 228,000 116,000 – 136,000 0 – 10,000 |
77,000 – 87,000
230,000 – 240,000 123,000 – 143,000 0 – 10,000 |
+ $4,000
+ $12,000 + $7,000 No Change |
| Roth IRA |
Annual Contribution 50 or over catch-up |
$6,500 Add $1,000 |
$7,000 Add $1,000 |
+ $500 No Change |
| AGI Deduction Phaseouts: | Single; Head of Household
Married Filing Jointly Married Filing Separately |
138,000 – 153,000
218,000 – 228,000 0 – 10,000 |
146,000 – 161,000
230,000 – 240,000 0 – 10,000 |
+ $8,000
+ $12,000 No Change |
| Rollover to Roth Eligibility | Joint, Single, or Head of Household Married Filing Separately |
No AGI Limit
Allowed / No AGI Limit |
No AGI Limit
Allowed / No AGI Limit |
No AGI Limit
Allowed / No AGI Limit |
What you can do
- Look for your retirement savings plan from the table and note the annual savings limit of the plan. If you are 50 years or older, add the catch-up amount to your potential savings total. Congress passed the SECURE Act 2.0 in late 2022, which lead to higher catch-up limits this year. Read our article about the SECURE Act 2.0 tax rules.
- Then make adjustments to your employer-provided retirement savings plan as soon as possible in 2024 to adjust your contribution amount.
- Double check to ensure you are taking full advantage of any employee matching contributions into your account.
- Use this time to review and re-balance your investment choices as appropriate for your situation.
- Set up new accounts for a spouse and/or dependents. Enable them to take advantage of the higher limits, too.
- Consider IRAs. Many employees maintain employer-provided plans without realizing they could also establish a traditional or Roth IRA. Use this time to review your situation and see if these additional accounts might benefit you or someone else in your family.
- Review contributions to other tax-advantaged plans, including flexible spending accounts (FSAs) and health savings accounts (HSAs).
The best way to take advantage of increases in annual contribution limits is to start early in the year. The sooner, the better. Not sure where to start? Schedule a consultation with our team.