Who wants to think about saving more for retirement during the fun of holiday shopping? You do!
The IRS, that go-to fun squad for gifts that keep on giving, has adjusted the maximum for retirement savings in 2024. The time to get your percentages and autopayments adjusted is now! Here is what is in store:
401(k), 403(b), 457 contributions for workers aged 50 and UNDER: $23,000
401(k), 403(b), 457 contributions for workers aged 50 and OVER: $30,500
IRA and Roth IRA contributions for people aged 50 and UNDER: $7,000
IRA and Roth IRA contributions for people aged 50 and OVER: $8,000
SIMPLE IRA contributions for people aged 50 and UNDER: $16,000
SIMPLE IRA contributions for people aged 50 and OVER: $19,500
SEP IRA contribution limits: 25% of employees first $345,000 of compensation with a maximum dollar limit of $69,000. Whichever maximum you hit first.
Self Employed 401k contribution limits:
Employee contributions: 100% of compensation up to $23,000 for those aged 50 and under
Employee contributions: 100% of compensation up to $30,500 for those aged 50 and older
25% of compensation for profit sharing with a compensation limit of $345,000
Total maximum combined contribution is $69,000
Health Savings accounts for singles: $4,150
Health Savings accounts for families: $8,300
2024 Roth IRA income limits*
- For singles and heads of household contributing to a Roth IRA, the phase-out range is increased to between $146,000 and $161,000, up from between $138,000 and $153,000.
•For married couples filing jointly, the income phase-out range is increased to between $230,000 and $240,000, up from between $218,000 and $228,000.
• The phase-out range for a married individual filing a separate return remains between $0 and $10,000.
Happy saving, Dear Readers!
*Source: Rethinking 65
