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

In 2024, the maximum employee contribution limit for 401(k) plans will rise to $23,000, compared to $22,500 in 2023. However, the catch-up contributions for individuals aged 50 and older will remain at $7,500. These updated limits also apply to 403(b) plans, most 457 plans, and Thrift Savings Plans.

The Internal Revenue Service (IRS) has also increased the contribution limits for Individual Retirement Accounts (IRAs). In 2024, investors will be allowed to save $7,000, up from the 2023 limit of $6,500. Catch-up contributions will remain unchanged at $1,000.

Furthermore, the adjusted gross income phaseout range for Roth IRA contributions is expanding in 2024. For single individuals and heads of households, the phaseout range will be between $146,000 and $161,000, up from the 2023 range of $138,000 to $153,000. Married couples filing jointly will see their phaseout range increase to $230,000 to $240,000 in 2024, compared to $218,000 to $228,000 in 2023.

Additionally, the IRS has raised the income thresholds that determine eligibility for the retirement savings contributions credit and for the ability to deduct pretax IRA contributions if an individual has a workplace plan.