“Don’t save what is left after spending; spend what is left after saving.” -Warren Buffett
As we kick off the new year, it’s important for savers to be aware of the updated retirement plan contribution limits for 2024. These limits determine how much you can contribute to tax-advantaged accounts like 401(k)s, IRAs, and other plans. Let’s take a look at what’s changing in 2024:
401(k), 403(b), Most 457 Plans, and Thrift Savings Plan
- Employee Contribution Limit: $23,000 (up from $22,500 in 2023)
- Catch-Up Contribution (age 50+): $7,500 (no change from 2023)
- Total Contribution Limit (employer + employee): $69,000 (up from $66,000 in 2023)
Individual Retirement Accounts (IRAs)
- Traditional and Roth IRA Contribution Limit: $7,000 (up from $6,500 in 2023)
- Catch-Up Contribution (age 50+): $1,000 (no change from 2023)
Income Phaseout Range for Roth IRA Contributions:
- Single/Head of Household: $146,000 – $161,000 (up from $138,000 – $153,000 in 2023)
- Married Filing Jointly: $230,000 – $240,000 (up from $218,000 – $228,000 in 2023)
SIMPLE IRAs
- Employee Contribution Limit: $16,000 (up from $15,500 in 2023)
- Catch-Up Contribution (age 50+): $3,500 (no change from 2023)
The increases to the contribution limits for 2024 are designed to help Americans save more for retirement and take advantage of tax-deferred growth. Be sure to review your current contributions and adjust as needed to maximize your savings potential for 2024.
As always, it’s a good idea to consult a qualified financial advisor who can provide personalized guidance on your retirement planning strategy. They can help ensure you’re taking full advantage of all available savings opportunities.y.
About Andy
Andrew Tapparo is a fee-only financial advisor at Tapparo Capital Management, a financial planning firm in Topsfield, MA, helping clients turn their savings into a retirement income that lasts. Inspired by the quote “Choose a job you love, and you will never work a day in your life,” Andy founded Tapparo Capital Management in 1997 with a passion for helping clients enjoy a truly worry-free and fulfilling retirement and experience financial freedom. As a Retirement Income Certified Professional (RICP®), he designs retirement strategies along with sound money management to help clients retire with confidence.
Andy holds a Bachelor of Science in Industrial Engineering from Rochester Institute of Technology in Rochester, New York, and a Master of Science in Finance from Bentley University in Waltham, Massachusetts. Specializing in retirement income planning, Andy completed a comprehensive financial industry education program at The American College of Financial Services and was awarded the Retirement Income Certified Professional® designation. He is frequently quoted in the media as a financial expert.
Andy and his wife, Susan, live in Topsfield, Massachusetts, and have two beautiful daughters. Outside of work, he is an automobile enthusiast, enjoys taking road trips, and loves the Outer Banks of North Carolina. In his spare time, he volunteers with the local high school varsity girl’s basketball team as the team statistician and runs the team’s website. He is passionate about supporting charities that serve our veterans and their families. To learn more about Andy, connect with him on LinkedIn.
