2024 IRS and 401k Contribution Limits

Cost-of-living adjustments mean higher IRA and 401(k) contribution limits for 2024.

 

2024 IRA contribution limits

Traditional or Roth IRA

  • Maximum contribution of $7,000
  • Catch-up contributions for taxpayers 50 and older remain unchanged at $1,000 ($8,000 total).

You can contribute the maximum to your Roth IRA if your modified adjusted gross income (MAGI) is below the threshold set for the year. 

Single and head of household

  • Below $146,000 can contribute the full $7,000 in 2024
  • Between $146,000 – $161,000 contribution is reduced
  • Over $161,000 cannot contribute to a Roth IRA at all

Married couples filing jointly

  • Below $230,000 can contribute the full $7,000 for 2024
  • Greater than $240,000 cannot contribute

(Note: The above income limits do not apply to traditional IRAs.)

    2024 401(k) and other employer-sponsored plans contribution limits

    • Contribution limits for 401K, 403(b), and most 457 plans $23,000
    • SIMPLE Plan $16,000

    Catch-up contribution limits:

    • An additional $7,500 in 2024.
    • For employees 50 and over who participate in SIMPLE plans $3,500

    2024 IRA deduction phase-out thresholds

    If you put money in a traditional IRA, you may be able to take a tax deduction for some or all of your contributions. (There is no deduction available for contributions to a Roth IRA.) However, the deduction is gradually phased-out if your income is above a certain amount.

    Phase-out ranges for 2024

    • For single taxpayers covered by a workplace retirement plan, the phase-out range is between $77,000 and $87,000.
    • For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is between $123,000 and $143,000.
    • 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 between $230,000 and $240,000.

    If you are married and filing a separate return (and covered by a workplace retirement plan), the phase-out range is between $0 and $10,000. This limit is not subject to a cost-of-living adjustment.