IRS Reveals 2024 Retirement Contribution Limit Updates

The IRS has announced an increase in the contribution limits for retirement savings accounts in 2024. The annual individual contribution limit for 401(k), 403(b), most 457 plans, and the Thrift Savings Plan will be raised by $500 to $23,000, with an additional catch-up contribution limit of $7,500 for those aged 50 or older. IRA contributors will be able to invest up to $7,000, with a catch-up contribution limit of $8,000. The phase-out income thresholds for IRA holders will also be raised. These changes allow individuals to save more for retirement and are particularly beneficial for those trying to catch up later in their careers.