IRS raises 401(k), IRA contribution limits for 2024

The IRS announced last week an increase in the maximum contribution limits for various retirement savings accounts in 2024. Workers can now set aside up to $23,000 in their 401(k) plans, a $500 increase from the previous year. 

The same adjustments apply to other accounts like the 403(b), most 457 plans, and the federal government’s Thrift Savings Plan. Catch-up contributions for individuals aged 50 and older will remain at $7,500. 

Additionally, the maximum contribution for IRAs has been raised to $7,000 from $6,500, with the catch-up contribution limit remaining at $1,000. This adjustment results from the IRS making annual cost-of-living changes, with the increases being more substantial during periods of high inflation. 

For more information see Megan Henney “IRS raises 401(k), IRA contribution limits for 2024”, Fox Business, November 2, 2023.