2024 IRS retirement account contribution limits announced: $23,000 for 401(k) plans, $7,000 for IRAs

Do these new limits also apply to 403(b) and 457 plans? My workplace offers a 457 and I'm never sure if the rules are the same.

Yes, the $23,000 contribution limit applies equally to 403(b) plans and most 457 plans. They all share the same base contribution limit, so you'll be able to contribute up to that amount regardless of which type of plan your employer offers. For 457 plans specifically, there's actually a potential bonus - some governmental 457 plans allow for a special catch-up provision in the three years before retirement age that can let you contribute up to twice the annual limit. But that's a special case you'd need to check with your specific plan administrator about.

Does it actually recommend specific investments or just the contribution amounts? I'm wondering if it helps with allocation between traditional and Roth accounts too.

I'm a bit skeptical about these tax tools - how does it handle state-specific retirement accounts like the California CalSavers program? And can it integrate with whatever retirement platform your employer uses?

It doesn't make specific investment recommendations like which funds to choose, but it does analyze your tax situation to suggest optimal splits between traditional and Roth accounts based on your current and projected future tax brackets. It showed me that I was overcontributing to Roth and missing out on current tax benefits. As for state-specific retirement programs, it definitely recognizes CalSavers and other state-mandated programs. It doesn't directly integrate with employer platforms, but it can import your contribution history and account statements from most major providers to analyze your current situation.

How exactly does this service work? Do they just call the IRS for you or what? I don't understand how they can get through when nobody else can.

This sounds like complete BS. There's no way to "skip the line" with the IRS. They're just taking your money for something you could do yourself if you were patient enough.

They use an automated system that navigates the IRS phone tree and holds your place in line. When they're close to reaching an agent, you get a call and they connect you directly to the IRS. You still talk to the same IRS agents, but without having to personally wait on hold for hours. It's not about skipping any lines - everyone still waits in the same queue. The difference is their system does the waiting instead of you having to stay on the phone yourself. I was skeptical too, but after wasting an entire afternoon trying to get through myself, the time saved was absolutely worth it.

Yes, those are increasing too! For single filers, the Roth IRA phase-out range will be $146,000-$161,000 (up from $138,000-$153,000). For married filing jointly, it'll be $230,000-$240,000 (up from $218,000-$228,000). Hope that helps with your planning!

Also worth noting that if you're over the income limits, you can still do a backdoor Roth conversion! I make above the limit and still managed to get money into my Roth last year this way. The basic strategy is contributing to a traditional IRA (which has no income limit for contributions, just for deductibility) and then converting to a Roth right after.

Yes! The limits are separate. You can contribute up to the full amount to BOTH accounts in the same year. That's a total of $30,000 between the two accounts ($23,000 to 401k + $7,000 to IRA). This is one of the best ways to maximize retirement savings if you can afford it.

Just be careful about IRA deductibility if you have a workplace plan. You can still contribute the full $7,000, but whether you can deduct traditional IRA contributions depends on your income level. Roth IRA contributions also have income limits as mentioned above.