IRS Announces New Retirement Contribution Limit

For 2024, the IRS raised 401(k) contribution limits, enabling employees to defer $23,000 into workplace plans, a rise from $22,500 in 2023.

In 2024, single taxpayers participating in a workplace retirement plan will see the phase-out range extended between $77,000 to $87,000, up from $73,000 to $83,000 in 2023.

In 2024, for married couples filing jointly, when the spouse contributing to an IRA is covered by a workplace retirement plan, the phase-out range expands between $123,000 to $143,000, compared to $116,000 to $136,000 in 2023.

In 2024, for an IRA contributor without workplace retirement plan coverage, married to a covered spouse, the phase-out range expands b/w $230,000 to $240,000, compared to $218,000 to $228,000 in 2023.

If a married individual, filing separately, is covered by a workplace retirement plan, the phase-out range for 2024 remains between $0 and $10,000.

If neither you nor your spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.

In 2024, more Americans may become eligible for Roth IRA contributions, as the adjusted gross income phaseout range increases b/w $146,000-$161,000 for singles and heads of households, up from $138,000-$153,000 in 2023.