2024 Retirement Contribution Limits

It is important to be aware of a few adjustments to the retirement account parameters for 2024. Understanding these changes is crucial to ensuring your savings plan remains strategically on track with your retirement goals. 

Regarding 401(k), 403(b), 457 plans, and Thrift Savings Plan:

• The contribution limit for 2024 has increased to $23,000, a rise from the previous year’s $22,500.
• For individuals age 50 and older, the catch-up contribution remains at $7,500, resulting in a maximum contribution of $30,500 for 2024.

For Traditional and Roth IRAs:

• The annual contribution limit has been raised to $7,000, up from $6,500 in 2023.
• Individuals aged 50 and above may continue with an additional catch-up contribution of $1,000, resulting in a total contribution of $8,000.
• It is also essential to note the modifications in the income phase-out range for Roth IRA contributors: For single filers and heads of household, the range is now between $146,000 and $161,000. For those married and filing jointly, the updated range is between $230,000 and $240,000.
• When the income limits for direct Roth IRA contributions are exceeded, we utilize backdoor Roth IRAs to allow you to continue saving!

We encourage you to review these changes and assess their implications for your financial planning. And, of course, if you have questions about your retirement savings strategy for 2024, please do not hesitate to contact us.

Emerald Advisors, LLC is a registered investment adviser.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and, unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.