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Contribution Limits for 2024

Calculator and Notepad

Every year in late October or early November, the Internal Revenue Service releases its retirement account contribution limits for the new year.

For people who want to get an early start, the updated numbers help provide some initial guidance about what’s available for the coming year. But for others, it makes a bit more sense to wait before working with the updated figures.

“The wise man saves for the future, but the foolish man spends whatever he gets.” Proverbs 21:20

We want you to have these new numbers in February, so you have some time to review them before we consider taking any action. So scan the accompanying tables to see some of the new limits that may apply to your situation. Keep in mind, however, that it is not necessarily appropriate to adjust your contribution amounts just because the limit amounts have changed.

We want you to better understand the role each of your retirement accounts plays in your overall financial strategy, so that if we do make a change, you’ll know how it fits into your approach.

“If you don’t set aside a sufficient amount in investment to produce your needed income when you can no longer work, you won’t have the second source to produce any or sufficient income,” wrote Mick Owens in his popular book, Diamond of Life: The Five P’s of Success and Significance.

After reaching age 73, you must begin taking the required minimum distributions from your 401(k), 403(b), or other defined contribution plans in most circumstances. Withdrawals from defined contribution plans are taxed as ordinary income. If a withdrawal is made before age 59½, a 10% federal income tax penalty may apply.

After reaching age 73, you must begin taking the required minimum distributions from a traditional individual retirement account (IRA) in most circumstances. Withdrawals are taxed as ordinary income. If a withdrawal is made before age 59½, a 10% federal income tax penalty may apply.


Roth IRA distributions must meet a five-year holding period and occur after age 59½ to qualify for the tax-free and penalty-free withdrawal of earnings. In certain other circumstances, such as the owner’s death, tax-free and penalty-free withdrawals can also be made. Note that the original Roth IRA owner is not required to make minimum annual withdrawals.

Retirement Accounts1

Retirement Account
2024
2023
Change
Maximum amount for 401(k), 403(b), and most 457 plans (age 49 and younger)
$23,000
$22,500
+$500
Employee catch-up contribution limit (age 50 and older) *
$7,500
$7,500
+$0
Maximum employee elective deferral (age 50 years and older)
$30,500
$30,000
+$500
SIMPLE account maximum
$16,000
$15,500
+$500
SIMPLE account catch-up limit
$3,500
$3,500
+0

*As part of the SECURE Act 2.0, starting January 1, 2025, investors aged 60 through 63 will be able to make annual catch-up contributions of up to $10,000.

Traditional Individual Retirement Accounts2

Filing Status
2024 phase-out range
2023 phase-out range
Single taxpayer covered by workplace plan
$77,000-$87,000
$73,000-$83,000
Married*
$123,000-$143,000
$116,000-$136,000
A person who is not covered by workplace plan is married to someone who is covered
$230,000-$240,000
$218,000-$228,000
A married individual filing a separate return who is not covered by a workplace plan
$0-$10,000
$0-$10,000

*If the spouse making the IRA contribution is covered by a workplace plan.

Roth IRA2

Filing Status
2024 phase-out range
2023 phase-out range
Single and head of household
$146,000-$161,000
$138,000-$153,000
Married, filing jointly
$230,000-$240,000
$218,000-$228,000
Married, filing separately
$0-$10,000
$0-$10,000

¹ IRS.gov, 2023

² IRS.gov, 2023

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