The IRS issued technical guidance in Notice 2023-75 regarding all of the cost‑of‑living adjustments affecting dollar limitations for IRAs, pension plans and other retirement-related items for tax year 2024.
$23,000 –Contribution limit for 401(k), 403(b), most 457 plans, Thrift Savings Plans
$7,500 – Catch-up contribution limit for individuals aged 50 and over
$7,000 – The limit on annual contributions to an IRA
$1,000 – Catch-up contribution limit for individuals aged 50 and over
$16,000 – Contributions to SIMPLE plans
$3,500 – Catch-up contribution to a SIMPLE plan for employees 50 and over
The income ranges for determining eligibility to make deductible contributions to traditional IRA, to contribute to Roth IRAs, and to claim the Saver’s Credit all increased for 2024.
Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or the taxpayer’s spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor the spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.)
The phase‑out ranges for 2024 are between:
$77,000 and $87,000 – For single taxpayers covered by a workplace retirement plan.
$123,000 and $143,000 – For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan.
$230,000 and $240,000 – For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered.
$0 and $10,000 – For a married individual filing a separate return who is covered by a workplace retirement plan.
$146,000 and $161,000 – For taxpayers making contributions to a Roth IRA for singles and heads of household.
$230,000 and $240,000 – For married couples filing jointly.
$0 and $10,000 – For married individual filing a separate return who makes contributions to a Roth IRA.
The income limit for the Saver’s Credit is:
$76,500 – For married couples filing jointly
$57,375 – For heads of household
$38,250 – For singles and married individuals filing separately
Additional changes made under SECURE 2.0 are as follows:
$200,000 – The limitation on premiums paid with respect to a qualifying longevity annuity contract to $200,000.
$105,000 – Deductible limit on qualified charitable distributions.
$53,000 – Deductible limit for a one-time election to treat a distribution from an individual retirement account made directly by the trustee to a split-interest entity.