IRS releases new IRA, 401(k) contribution limits for 2024

The contribution limits for some of the most popular retirement plans are increasing, the Internal Revenue Service announced this week.

The amount individuals can contribute to their 401(k) plan in 2024 will rise to $23,000, up from $22,500 in 2023, according to a statement from the IRS. The increase covers those who participate in 403 (b) and most 457 plans, as well as the federal government’s Thrift Savings Plan.

Also, the limit on annual contributions to an Individual Retirement Account, or IRA, is increasing by $500 – up to $7,000 from $6,500. IRA catch-up contributions for individuals aged 50 and older remain $1,000 for 2024.

The catch-up contributions limit for employees aged 50 and older who participate in 401(k), 403(b), and most 457 plans, as well as the Thrift Savings Plan, will stay the same – $7,500 for 2024.

Participants in 401(k), 403(b), and most 457 plans, as well as the Thrift 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 older who participate in SIMPLE plans remains $3,500 for 2024.

Increases are also in place for income ranges for traditional IRSs or Roth IRAs, as well as Saver’s Credit. You can see more on those breakdowns and phase-out ranges here.