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Sunday, November 10, 2024

2023 2024 401k 403b 457 IRA FSA HSA Contribution Limits

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Retirement account contribution limits are adjusted for inflation every year. Inflation has moderated in current months. Some contribution limits and revenue limits will go up in 2024.

Earlier than the IRS publishes the official changes in late October or early November, I calculate them utilizing the printed inflation numbers and going by the identical guidelines the IRS makes use of as stipulated by legislation. I’ve maintained a document of 100% accuracy ever since I began doing these calculations.

The IRS Discover 2023-75 confirmed all these.

2023 2024 401k/403b/457/TSP Elective Deferral Restrict

The 401k/403b/457/TSP contribution restrict is $22,500 in 2023. It’s going to go up by $500 to $23,000 in 2024.

In case you are age 50 or over by December 31, the catch-up contribution restrict is $7,500 in 2023. It’s going to keep the identical at $7,500 in 2024.

Employer match or profit-sharing contributions aren’t included in these limits. Should you work for a number of employers in the identical yr or in case your employer provides a number of plans, you could have one single worker contribution restrict for 401k, 403b, and the federal authorities’s Thrift Financial savings Plan (TSP) throughout all plans.

The 457 plan restrict is separate from the 401k/403b/TSP restrict. You may contribute the utmost to each a 401k/403b/TSP plan and a 457 plan.

2023 2024 Annual Additions Restrict

The entire contributions from each the employer and the worker to all outlined contribution plans by the identical employer is $66,000 in 2023. It’s going to improve to $69,000 in 2024.

The age-50-or-over catch-up contribution is separate from this restrict. Should you work for a number of employers in the identical yr, you could have a separate annual additions restrict for every unrelated employer.

2023 2024 SEP-IRA Contribution Restrict

If in case you have self-employment revenue, you may contribute a share of your self-employment revenue to a SEP-IRA. The SEP-IRA contribution restrict is at all times the identical because the annual additions restrict for a 401k plan. It’s $66,000 in 2023, and it’ll improve to $69,000 in 2024.

As a result of the SEP-IRA doesn’t permit worker contributions, except your self-employment revenue is properly above $200,000, you could have a better contribution restrict in the event you use a solo 401k. See Solo 401k When You Have Self-Employment Revenue.

2023 2024 Annual Compensation Restrict

The utmost annual compensation that may be thought of for making contributions to a retirement plan is at all times 5x the annual additions restrict. Subsequently the annual compensation restrict is $330,000 in 2023. It’s going to improve to $345,000 in 2024.

2023 2024 Extremely Compensated Worker Threshold

In case your employer limits your contribution since you’re a Extremely Compensated Worker (HCE), the minimal compensation to be counted as an HCE is $150,000 in 2023. It’s going to go as much as $155,000 in 2024.

2023 2024 SIMPLE 401k and SIMPLE IRA Contribution Restrict

Some smaller employers provide a SIMPLE 401K or a SIMPLE IRA plan as a substitute of an everyday 401k plan. SIMPLE 401k and SIMPLE IRA plans have a decrease contribution restrict than customary 401k plans. The contribution restrict for SIMPLE 401k and SIMPLE IRA plans is $15,500 in 2023. It’s going to go as much as $16,000 in 2024.

In case you are age 50 or over by December 31, the catch-up contribution restrict in a SIMPLE 401k or SIMPLE IRA plan is $3,500 in 2023. It’s going to keep the identical at $3,500 in 2024.

Employer contributions to a SIMPLE 401k or SIMPLE IRA plan aren’t included in these limits.

2023 2024 Conventional and Roth IRA Contribution Restrict

You want taxable compensation (“earned revenue”) to contribute to a Conventional or Roth IRA however there’s no age restrict. The Conventional IRA or Roth IRA contribution restrict is $6,500 in 2023. It’s going to go as much as $7,000 in 2024.

In case you are age 50 or over by December 31, the catch-up restrict is $1,000 in 2023. It’s going to keep the identical at $1,000 in 2024.

The IRA contribution restrict is shared between the Conventional IRA and the Roth IRA. Should you contribute the utmost to a Roth IRA, you may’t contribute the identical most once more to a Conventional IRA, and vice-versa.

The IRA contribution restrict and the 401k/403b/TSP or SIMPLE contribution restrict are separate. You may contribute the respective most to each a 401k/403b/TSP/SIMPLE plan and a Conventional IRA or Roth IRA.

2023 2024 Deductible IRA Revenue Restrict

The revenue restrict for taking a full deduction to your contribution to a Conventional IRA whereas collaborating in a office retirement plan in 2023 is $73,000 for single filers and $116,000 for a married couple submitting collectively. The deduction fully phases out when your revenue goes above $83,000 in 2023 for singles and $136,000 for married submitting collectively.

The total-deduction limits will go up in 2024 to $77,000 for single filers and to $123,000 for a married couple submitting collectively. The deduction will fully part out when your revenue goes above $87,000 in 2024 for singles; and above $143,000 for married submitting collectively.

If you’re not lined in a office retirement plan however your partner is, the revenue restrict for taking a full deduction to your contribution to a Conventional IRA is $218,000 in 2023. The deduction fully phases out when your joint revenue goes above $228,000 in 2023.

The total-deduction restrict will go as much as $230,000 in 2024. The deduction fully phases out when your joint revenue goes above $240,000 in 2024.

If you exceed the revenue restrict for taking a deduction for contributing to a Conventional IRA, think about contributing to a Roth IRA as a substitute.

2023 2024 Roth IRA Revenue Restrict

The revenue restrict for contributing the utmost to a Roth IRA depends upon your submitting standing. It’s $138,000 for singles and $218,000 for married submitting collectively in 2023. These limits will go as much as $146,000 for singles and $230,000 for married submitting collectively in 2024.

You may’t contribute something on to a Roth IRA when your revenue goes above $153,000 in 2023 for singles and $228,000 in 2023 for married submitting collectively. These limits will go as much as $161,000 for singles and $240,000 for married submitting collectively in 2024.

Your contribution eligibility is prorated within the revenue phase-out vary. If you exceed the revenue restrict for contributing to a Roth IRA, think about doing the Backdoor Roth.

2023 2024 Healthcare FSA Contribution Restrict

The Healthcare FSA contribution restrict is $3,050 per particular person in 2023. It’s going to go as much as $3,200 in 2024.

Some employers permit carrying over some unused quantity to the next yr. The utmost quantity that may be carried over to the next yr is about to twenty% of the contribution restrict within the present tax yr. In consequence, the carryover restrict is $610 per particular person in 2023. It’s going to go as much as $640 in 2024.

2023 2024 HSA Contribution Restrict

It’s good to have a Excessive Deductible Well being Plan with no different protection to contribute to a Well being Financial savings Account (HSA). Not all high-deductible medical insurance is HSA-eligible. Medicare or your partner having a general-purpose healthcare FSA counts as having different protection, which makes you ineligible to contribute to an HSA.

You don’t want taxable compensation (“earned revenue”) to contribute to an HSA.

The HSA contribution restrict for single protection is $3,850 in 2023. The HSA contribution restrict for household protection is $7,750 in 2023. These limits will go as much as $4,150 for single protection and $8,300 for household protection in 2024. The brand new limits had been introduced beforehand within the spring. Please see HSA Contribution Limits.

Those that are 55 or older by December 31 can contribute a further $1,000. In case you are married and each of you’re 55 or older by December 31, every of you may contribute the extra $1,000 however they have to go into separate HSAs in every particular person’s title.

2023 2024 Saver’s Credit score Revenue Restrict

The revenue limits for receiving a Retirement Financial savings Contributions Credit score (“Saver’s Credit score”) in 2023 for married submitting collectively are $43,500 (50% credit score), $47,500 (20% credit score), and $73,000 (10% credit score). These limits in 2024 will go as much as $46,000 (50% credit score), $50,000 (20% credit score), and $76,500 (10% credit score).

The boundaries for singles are half of the bounds for married submitting collectively. The 2023 limits are $21,750 (50% credit score), $23,750 (20% credit score), and $36,500 (10% credit score). The 2024 limits will likely be $23,000 (50% credit score), $25,000 (20% credit score), and $38,250 (10% credit score)

All Collectively

2023 2024 Enhance
Restrict on worker contributions to 401k, 403b, or 457 plan $22,500 $23,000 $500
Restrict on age 50+ catch-up contributions to 401k, 403b, or 457 plan $7,500 $7,500 None
SIMPLE 401k or SIMPLE IRA contributions restrict $15,500 $16,000 $500
SIMPLE 401k or SIMPLE IRA age 50+ catch-up contributions restrict $3,500 $3,500 None
Most annual additions to all outlined contribution plans by the identical employer $66,000 $69,000 $3,000
SEP-IRA contribution restrict $66,000 $69,000 $3,000
Extremely Compensated Worker definition $150,000 $155,000 $5,000
Annual Compensation Restrict $330,000 $345,000 $15,000
Conventional and Roth IRA contribution restrict $6,500 $7,000 $500
Conventional and Roth IRA age 50+ catch-up contribution restrict $1,000 $1,000 None
Deductible IRA revenue restrict, single, lively participant in office retirement plan $73,000 – $83,000 $77,000 – $87,000 $4,000
Deductible IRA revenue restrict, married, lively participant in office retirement plan $116,000 – $136,000 $123,000 – $143,000 $7,000
Deductible IRA revenue restrict, married, partner is lively participant in office retirement plan $218,000 – $228,000 $230,000 – $240,000 $12,000
Roth IRA revenue restrict, single $138,000 – $153,000 $146,000 – $161,000 $8,000
Roth IRA revenue restrict, married submitting collectively $218,000 – $228,000 $230,000 – $240,000 $12,000
Healthcare FSA Contribution Restrict $3,050 $3,200 $150
HSA Contribution Restrict, single protection $3,850 $4,150 $300
HSA Contribution Restrict, household protection $7,750 $8,300 $550
HSA, age 55 catch-up $1,000 $1,000 None
Saver’s Credit score revenue restrict, married submitting collectively $43,500 (50%)
$47,500 (20%)
$73,000 (10%)
$46,000 (50%)
$50,000 (20%)
$76,500 (10%)
$2,500 (50%)
$2,500 (20%)
$3,500 (10%)
Saver’s Credit score revenue restrict, single $21,750 (50%)
$23,750 (20%)
$36,500 (10%)
$23,000 (50%)
$25,000 (20%)
$38,250 (10%)
$1,250 (50%)
$1,250 (20%)
$1,750 (10%)

Supply: IRS Discover 2022-55, Discover 2023-75.

2024 Tax Brackets and Commonplace Deduction

I even have the 2024 revenue tax brackets, customary deduction, capital good points, and present tax exclusion restrict. Please learn 2024 Tax Brackets, Commonplace Deduction, Capital Features, and so on.

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