IRS releases 2024 inflation adjustments for retirement accounts

Find your retirement account type below to see how much your maximum allowed contribution increased.

401(k), 403(b), Sec. 457

• Increase in Employee contribution max to $23,000 from $22,500

• Total Employee/Employer contribution max increases to $68,000 from $66,000

Traditional and Roth IRA's

• Increase to $7,000 from $6,500

• Individuals 50 and older can contribute an additional $1,000

For traditional IRAs, the income phase-out ranges for 2024 are:

• For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to between $77,000 and $87,000, up from between $73,000 and $83,000.

• For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is increased to between $123,000 and $143,000, up from between $116,000 and $136,000.

• For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to between $230,000 and $240,000, up from between $218,000 and $228,000.

• For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

SEP IRA

• Total contribution max increases to $68,000 from $66,000

SIMPLE IRA

• Total contribution max increases to $16,000 from $15,500

If you have any questions about opening or contributing to a retirement account book a free initial consultation with us today.

Disclaimer: The information provided on this blog is for informational purposes only and does not constitute written tax advice. Please consult with your own qualified tax advisor for specific advice regarding your individual circumstances.