Here’s what you need to know about 2024 retirement plan contribution limits to help make your annual investment game plan!
401(k)s. You can now defer up to $23,000 from your salary, with a maximum total contribution from all sources of $68,000, including matching and profit sharing. You can save an additional $7,500 if you’re age 50 or older.
Traditional and Roth IRAs. Limits increase to $7,000 for Traditional and Roth IRAs plus an additional $1,000 if you are age 50 or older.
Roth IRAs Income Phase-Out. Your ability to contribute to a Roth IRA depends on your income. Married couples can make the full contribution if modified adjusted gross income (AGI) falls below $230,000, phasing out completely at $240,000. For single savers, the income range is $146,000 to $161,000. If you expect income to exceed the limits, consider Backdoor Roth IRA contributions.
Solo 401(k)s & SEP IRAs. Limits for Solo 401(k)s and SEP IRAs also increase to $68,000. Want to supercharge your Roth savings? Consider a Mega Backdoor Roth Solo 401(k).
SIMPLE IRAs. Limits for SIMPLE IRAs increase to $16,000 plus an additional $3,000 if you are age 50 or older.
Health Savings Accounts. HSA limits get a bump up to $4,150 for individuals and $8,300 for families covered under qualifying family plans. You can contribute an extra $1,000 if you are age 55 or older. Read 3 Tips to Maximize Your HSA to make the most of this powerful tool!
Questions? Don’t hesitate to reach out…we’re here to help!
Ryan Colis
CFA, CFP®
Partner, Financial Advisor
About the Author
Ryan is a problem solver. He has a distinct ability to create a simple solution for very complex puzzles. So, naturally, he’s an integral part of our team. His favorite part of his role at Alterra is the analysis – whether analyzing a financial plan or reviewing an investment portfolio. However, the profession allows him to share that passion with clients by helping them navigate financial complexities as they collaborate on achieving their personal and financial goals.
After completing his undergraduate degree in Business Management, Ryan and Grant met by chance, developed a rapport and have been working together ever since. Ryan has continued his formal training in finance by earning his CFP and CFA designations.
The “Alterra” name was coined by joining the Latin roots “alter”, the origin of the word “altruism” with “terra” meaning earth or land. This name reflects the company philosophy of “clients before profits” and providing firmly grounded advice.