The IRS has announced increased benefit and contribution limits for qualified retirement plans in 2024, including Sec. 401(k) plans and individual retirement arrangements (IRAs). The contribution limit for Sec. 401(k) plans, as well as Sec. 403(b) and most Sec. 457 plans, will rise to $23,000, up from $22,500 in 2023.

Traditional and Roth IRAs will see an increase in their annual contribution limit to $7,000, with a $1,000 catch-up contribution limit for individuals aged 50 and older. Employees in 401(k), 403(b), and most 457 plans, as well as the federal government's Thrift Savings Plan, can still make a catch-up contribution of $7,500 in 2024, allowing for a total contribution of up to $30,500.

The limit for contributions to SIMPLE retirement plans is raised to $16,000 from $15,500, with a $3,500 catch-up contribution limit for those 50 and older. Additionally, income ranges for eligibility to make deductible contributions to traditional IRAs, contribute to Roth IRAs, and claim the saver's credit have all increased for 2024. Phase-out ranges for traditional IRA deductions have been adjusted for various filing statuses and income levels. The phase-out range for Roth IRA contributions has also seen an increase.

The income limit for the saver's credit, available to low- and moderate-income workers, has been raised for different filing statuses. Married couples filing jointly can now earn up to $76,500 to be eligible for the credit, up from $73,000. Heads of households and singles have new income limits of $57,375 and $38,250, respectively.

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https://www.journalofaccountancy.com/news/2023/nov/inflation-adjustments-to-retirement-account-limits-issued-for-2024.html