Quick Guide to 2024 IRS Limits, Contributions, and Income Caps

Click image below to review the StonewayFS Quick Guide to 2024 IRS Limits, Contributions, and Income Caps. Plus we have included the text summary of changes further below in the blog post!

Here is a text only summary of our Quick Guide to IRS highlights and changes for 2024 (related to retirement planning)

1. Contribution Limits Increase:

  • The contribution limit for employees participating in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan increased to $23,000, up from $22,500.

2. IRA Annual Contribution Limit:

  • The limit on annual contributions to an IRA increased to $7,000, up from $6,500.
  • The catch-up contribution limit for individuals aged 50 and over remains $1,000 for 2024.

3. Catch-Up Contributions for 401(k) Plans:

  • The catch-up contribution limit for employees aged 50 and over in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan remains $7,500 for 2024.
  • Participants aged 50 and older in these plans can contribute up to $30,500 starting in 2024.

4. Income Ranges for Deductible Contributions:

  • Income ranges for determining eligibility for deductible contributions to traditional IRAs increased for 2024.
  • Phase-out ranges for 2024:
    • Single taxpayers: $77,000 to $87,000 (up from $73,000 to $83,000).
    • Married couples filing jointly: $123,000 to $143,000 (up from $116,000 to $136,000).
    • IRA contributor not covered, married to a covered spouse: $230,000 to $240,000 (up from $218,000 to $228,000).
    • Separate return, covered by a retirement plan: $0 to $10,000.

5. Roth IRA Contributions:

  • Income phase-out ranges for Roth IRA contributions increased for 2024.
  • Phase-out ranges for 2024:
    • Singles and heads of household: $146,000 to $161,000 (up from $138,000 to $153,000).
    • Married couples filing jointly: $230,000 to $240,000 (up from $218,000 to $228,000).
    • Separate return: $0 to $10,000.

6. Saver’s Credit:

  • Income limit for the Saver’s Credit increased for 2024:
    • Married couples filing jointly: $76,500 (up from $73,000).
    • Heads of household: $57,375 (up from $54,750).
    • Singles and married individuals filing separately: $38,250 (up from $36,500).

7. Health Savings Account (HSA) Updates:

  • For those utilizing HSAs, contribution limits and other aspects have been revised, affecting the ability to save for medical expenses in retirement.
  • The HSA contribution limit for individuals with self-only coverage is now $4,150 (7.5% increase from 2023), while the limit for family coverage is $8,300 (7.1% increase from 2023)

8. SIMPLE Retirement Accounts:

  • Individuals can contribute up to $16,000 to their SIMPLE retirement accounts for 2024, up from $15,500.

9. SECURE 2.0 Changes:

  • Limitation on premiums for a qualifying longevity annuity contract remains $200,000 for 2024.
  • Deductible limit on charitable distributions increased to $105,000, up from $100,000.
  • Deductible limit for a one-time election to treat a distribution to a split-interest entity increased to $53,000, up from $50,000.

Lastly, don’t miss out on educational opportunities. Stoneway Financial Services launched our financial educational webinar series in Q4 of 2023 so check for our next presentation (we typically host one weekly). The IRS provides educational resources and opportunities to help investors understand and navigate the changes in retirement planning as well. To review the full document summarized above, please click here.

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