IRS 2024 retirement contribution limits increased: $23,000 for 401(k) plans and $7,000 for IRAs
Good news for retirement savers! I just saw that the IRS announced the retirement account contribution limits for 2024. For 401(k) plans, the limit is going up to $23,000 and IRAs will be $7,000! I've been trying to max out my retirement savings each year and was wondering if anyone knows how much these limits increased from 2023? Also, does anyone know if the catch-up contributions for people over 50 changed too? I'm turning 50 next year and want to take advantage of that extra savings opportunity. Does this mean I should adjust my contributions at work now for next year? I currently put in about 15% to my 401(k) but maybe I should increase it if the limits are going up.
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Alejandro Castro
The 2024 limits are indeed a nice bump from 2023! The 401(k) contribution limit increased by $500 (from $22,500 in 2023 to $23,000 in 2024). For IRAs, it's a $500 increase as well (from $6,500 to $7,000). For catch-up contributions since you're turning 50, you'll be able to contribute an additional $7,500 to your 401(k) on top of the $23,000 limit, bringing your total possible contribution to $30,500. For IRAs, the catch-up contribution remains at $1,000, so your total IRA limit would be $8,000. If you're aiming to max out your contributions, you might want to adjust your percentage now for 2024. With the higher limits, your 15% might not hit the maximum unless your salary is around $153,000 or higher.
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Monique Byrd
•Quick question - do employer matches count toward these limits? My company matches 5% of my salary.
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Alejandro Castro
•No, employer matches don't count toward your personal contribution limit. The $23,000 limit is just for your elective deferrals. There is a larger overall limit for total contributions (employee + employer) to defined contribution plans like 401(k)s, which will be $69,000 for 2024 (up from $66,000 in 2023). So your 5% match would be in addition to whatever you contribute up to that $23,000 personal limit.
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Jackie Martinez
After struggling to figure out how to maximize my retirement savings, I found this amazing tool called taxr.ai (https://taxr.ai) that helped me understand exactly how these new contribution limits affect my specific situation. It analyzed my income and tax situation and showed me how increasing my 401(k) contributions would impact my taxes. The tool even calculated how much I needed to adjust my paycheck contributions to hit the new $23,000 limit perfectly by the end of 2024. It was way easier than the spreadsheet I was trying to build myself! It also explained the catch-up contribution rules since I just turned 50.
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Lia Quinn
•Does it also help with figuring out backdoor Roth conversions? I make too much for direct Roth contributions but want to take advantage of the $7,000 limit somehow.
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Haley Stokes
•I'm skeptical about these online calculators. How accurate is it really? Most of these tools I've tried don't account for state taxes or other complexities.
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Jackie Martinez
•Yes, it actually does help with backdoor Roth conversions! It walks you through the process step by step and explains the tax implications. It even has a feature that helps you avoid the pro-rata rule complications if you have existing Traditional IRA balances. Regarding accuracy, I was skeptical too at first. What impressed me is that it accounts for both federal AND state taxes, and even factors in things like the SALT deduction cap. It's much more comprehensive than the basic calculators I've used before. It even helped me identify that I was in a position to do a Roth conversion at a lower tax bracket than I realized.
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Lia Quinn
I tried taxr.ai after seeing the comment here and wow - it was exactly what I needed! I've been confused about backdoor Roth conversions for years and the step-by-step guidance made it super clear. It showed me how to take advantage of the new $7,000 IRA limit even though I'm over the income threshold for direct Roth contributions. The tool also pointed out that I wasn't maximizing my HSA contributions (which I didn't even realize was considered a retirement strategy). Now I have a complete savings plan for 2024 that incorporates the new limits for everything - 401(k), IRA, and HSA. Definitely worth checking out if you're trying to optimize your retirement savings with these new limits!
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Asher Levin
I've been trying to call the IRS for WEEKS to get clarification on these new retirement limits and how they affect my specific situation (self-employed with both a SEP IRA and a solo 401(k)). Always got the "high call volume" message and hung up on. I finally used Claimyr (https://claimyr.com) and got through to an actual IRS agent in 20 minutes! They have this cool system that navigates the IRS phone tree and holds your place in line, then calls you when an agent is ready. You can see how it works in their demo: https://youtu.be/_kiP6q8DX5c The agent explained exactly how the new $23,000 elective deferral limit applies to my solo 401(k) and how that's separate from the employer contribution portion of my plan. Saved me hours of frustration and potentially expensive mistakes!
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Serene Snow
•How does this actually work? Do they just call the IRS for you or what? Seems weird that they could get through when nobody else can.
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Issac Nightingale
•Sounds too good to be true tbh. The IRS is completely unreachable these days. And if they do get through, how do they transfer the call to you? I'm super skeptical.
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Asher Levin
•They don't call for you - it's actually a smart system that navigates the IRS phone menus and waits on hold in your place. When they finally reach a human, you get a call and are connected directly to the IRS agent. It's your call, just without the waiting. I was confused about that too at first. They basically have technology that keeps redialing and navigating the phone tree until they get through, then they bridge you into the call. You're talking directly to the IRS - Claimyr just handled the hold time for me. No idea how they do it technically, but it worked perfectly when nothing else did.
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Issac Nightingale
Ok I have to admit I was wrong. After seeing the replies here I decided to try Claimyr for an issue I've been having with my retirement account distributions. I've literally been trying to reach the IRS for 3 months with no luck. Used the service this morning and got connected to an IRS agent in about 35 minutes. The agent cleared up my confusion about how the new limits affect Required Minimum Distributions for inherited IRAs. Turns out I was calculating it all wrong and would have had a huge penalty! Anyone dealing with these retirement account questions really should try getting an official answer from the IRS, and this actually makes it possible. Just wanted to follow up since I was so skeptical before.
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Romeo Barrett
Does anyone know if the income limits for contributing to a Roth IRA are also changing for 2024? With the contribution limit going up to $7,000, I'm wondering if the income thresholds are increasing too.
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Marina Hendrix
•Yes! The income phase-out range for Roth IRA contributions is increasing for 2024. For single filers, the phase-out range is $146,000 to $161,000 (up from $138,000-$153,000 in 2023). For married filing jointly, it's $230,000-$240,000 (up from $218,000-$228,000). So if you were just above the limit last year, you might be eligible for at least partial Roth contributions in 2024!
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Romeo Barrett
•That's awesome news! I was just barely phased out last year with an income of $154k, so it sounds like I can make at least partial direct Roth contributions this year. Thanks for the info!
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Justin Trejo
Do these new limits apply to 403(b) plans too? My university job offers a 403(b) instead of a 401(k) and I'm never sure if the rules are the same.
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Alejandro Castro
•Yes, the $23,000 contribution limit for 2024 applies to 403(b) plans as well! The elective deferral limits are the same for 401(k)s, 403(b)s, most 457 plans, and the federal government's Thrift Savings Plan. The $7,500 catch-up contribution for those 50+ also applies to your 403(b). Additionally, 403(b) plans sometimes have a special catch-up provision for employees with 15+ years of service at the same eligible employer, which can allow for additional contributions beyond the standard limits.
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