2024 Contribution Limits

401k, HSA, and IRA contribution limits have increased for 2024, giving you more opportunities to boost your savings! As the halfway point of the year approaches, now is a great time to review your current savings rates and adjust accordingly.

“New contribution limits for 2024 for 401k, HSA, and IRAs:

401k contribution limits have increased from 22,500 to 23,000 for the 2024 tax year. The catch-up contribution for people who are over 50 or turning 50 in 2024 is 7,500. Now the entire plan contribution limit is up from 66,000 to 69,000, so this includes your employee contributions, any match that your employer gives you, as well as any after-tax contributions that you would be making. So if your plan offers a mega backdoor Roth strategy or after-tax contributions or in plan Roth conversions, this is where that would come into play.

Traditional IRA and Roth IRA contributions have increased from 2023 to 2024. Instead of $6,500, you can now get $7,000 into those accounts. If you’re over 50 or turning 50 in 2024, you can get in an additional $11,000. In order to contribute directly to an IRA you need to be under the income limits. For married filing jointly filers, that limit is $240,000 and for single filers it’s $160,000 so once you get to that point, that’s when you want to talk to your advisor about possibly doing a backdoor Roth IRA strategy.

If you’re in a high deductible health plan you have access to contribute to something called a health savings account or an HSA. The contribution limits have increased from 2023 to 2024. If you are are in a family plan, you can now contribute $8,300. If you’re in an individual plan, you can now contribute $4,150. If you’re over 50 or turning 50 this year, you can get an additional $1,000 into that account. Now remember, these are total plan limits so if your employer gives you a match, that would be included in that dollar amount.”