IRS raises 401(k), IRA contribution limits for 2024

[mystery-ak]

Updated on November 2, 2023 9:40am EDT
IRS raises 401(k), IRA contribution limits for 2024
IRS lifts retirement contribution limits for 2024 amid still-high inflation

By Megan Henney FOXBusiness

The IRS on Wednesday raised the amount that Americans can set aside for retirement in their 401(k) and other tax-deferred plans next year.

Beginning in 2024, workers will be allowed to contribute up to $23,000 to their 401(k), an increase of $500 from this year. The increase applies to other retirement savings accounts, including the 403(b) plan, most 457 plans and the federal government's Thrift Savings Plan.

Catch-up contributions for savers age 50 and older will remain unchanged at $7,500.

The agency also boosted the contribution maximums for IRAs and lifted the limit to $7,000 for 2024, up from $6,500 in 2022. The catch-up contribution amount for IRAs will stay at $1,000.

The IRS makes such cost-of-living adjustments annually, but in times of high inflation, the increases are more significant and impactful for taxpayers.

Just a fraction of people – about 8.5% – who contribute to a retirement account hit the maximum in 2018, according to a recent Congressional Research Service report.

more
https://www.foxbusiness.com/economy/irs-raises-401k-ira-contribution-limits-2024

[GtHawk]

Only because they want people to add as much as possible before they confiscate it all....for the good of the many(illegals that is).

[mountaineer]

Thank goodness! We have so much extra money just lying around these days, especially after paying for groceries, property taxes, gasoline and utilities!!

[DefiantMassRINO]

It's easier to confiscate wealth when it's all sitting in one place.

It worked for Manuel Noriega when he siezed the drug smugglers' money in Panama's banks.

[GtHawk]

Thank goodness! We have so much extra money just lying around these days, especially after paying for groceries, property taxes, gasoline and utilities!!

I just received notice from Social Security that they had incorrectly calculated my payments and were sending me a check and increasing my monthly by $120...What I want to know is how the hell my landlord knew before I did because he increased my rent starting the same time by the same exact amount!

[mountaineer]

I just received notice from Social Security that they had incorrectly calculated my payments and were sending me a check and increasing my monthly by $120...What I want to know is how the hell my landlord knew before I did because he increased my rent starting the same time by the same exact amount!

We are being watched ...
 

[Smokin Joe]

Thank goodness! We have so much extra money just lying around these days, especially after paying for groceries, property taxes, gasoline and utilities!!

Its different if you work for the Government or one of the legions of NGOs that suck up grnt money...

[catfish1957]

To the rest of you who are good at this....   Age 72 will get here sooner than you think.....   (RMD)