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Oliver Brown

Oliver Brown

6th of November 2023

2 MINS READ

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IRS New IRA 401k Contribution Limits for 2024

The IRS new IRA 401k contribution limits for 2024 have been officially released by the Internal Revenue Service. Planning, for retirement is a step especially when it comes to maximizing savings opportunities.

It’s important to note that in 2024 the contribution limit for 401(k) plans will be increase to $23,000 from the amount of $22,500 in 2023. This adjustment applies not to 401(k) plans but also includes 403(b) and 457 plans, as well, as the federal governments Thrift Savings Plan.

Significant Rise in IRA Contribution Limits

IRS New IRA 401k

Moreover, the IRS new IRA 401k guidelines highlight an increase in the annual contribution limits for Individual Retirement Accounts (IRA). The updated limit, for contributions has raised to $7,000, which’s an increase of $500 compared to the previous limit of $6,500.

However the maximum catch up contribution for individuals aged 50 and above in Individual Retirement Accounts (IRAs) will remain unchanged at $1,000 for the year 2024.

For those who’re 50 and older and participate in retirement plans such as 401(k) 403(b) 457 plans and the Thrift Savings Plan (TSP) the catch up contribution limit will stay steady at $7,500 for the upcoming year.

This means that individuals in these plans who are 50 years or older can contribute a total of up to $30,500 starting from 2024. Meanwhile employees aged 50 and above participating in SIMPLE plans will still have a catch up contribution limit of $3,500 for the year 2024.

Apart from these adjustments there are also changes regarding income ranges applicable to IRAs or Roth IRAs well as modifications, to the Savers Credit. It’s essential for individuals to stay informed about these IRS new IRA 401k updates to optimize their retirement savings and secure a comfortable financial future.

IRS New IRA 401k Contribution Limits for 2024