IRS Raises 2024 Contribution Limits for 401(k) and IRA to $23,000 and $7,000 Respectively

The new contribution increase, an adjustment due to rising costs of living, offers retirement savers the opportunity to stash more money in tax-deferred 401(k), 403(b), and most 457 plans, the federal government’s Thrift Savings Plan, and IRAs; "catch-up" limits held steady for individuals aged 50 and over.

The IRS has raised the 2024 contribution limits for 401(k) and IRA to $23,000 and $7,000 respectively, up from $22,500 and $6,500 in 2023.
The adjustment, due to rising costs of living, allows retirement savers to put more money in tax-deferred accounts such as 401(k), 403(b), most 457 plans, the federal government’s Thrift Savings Plan, and IRAs.
"Catch-up" contribution limits have remained steady for individuals aged 50 and over, allowing them to contribute an additional $7,500 to 401(k) or similar plans, and an extra $1,000 to IRAs, raising the total to $30,500 and $8,000 respectively.
In the Roth 401(k) and Roth IRA options, contributions are subject to income tax in the year they're made, but they can then grow tax-free and can be withdrawn tax-free in retirement.
Income phaseouts for IRA and Roth IRA contributions have also increased. For example, income phaseouts for Roth IRA contributions have risen to between $146,000 and $161,000 for singles and heads of household, and between $230,000 and $240,000 for married couples filing jointly.