Unlock Your Financial Future: A Quick Guide to 2024's IRA and Retirement Plan Contribution Limits

Navigating retirement planning can be a maze.

To help you out, my team at Horizon Trust Company created a concise guide on 2024 contribution limits for retirement accounts like IRAs and 401(k)s.

Take note: *Currently, the team can only make educated estimates for 2024 retirement plan contributions based on the CPI (we put in our assumptions here, including catch-up amounts). We’ll revise these figures once the IRS confirms them later ahead of 2024.

Your 2024 Retirement Plan Contribution Snapshot

• Traditional/Roth/Self-Directed IRA: $7,000 ($8,000 if you're 50+)
• 401(k)/403(b): $23,000 ($30,500 if you're 50+)
• SIMPLE IRA: $16,000 ($19,500 if you're 50+)
• SEP IRA: Estimated $68,000
• 457(b): $23,000 ($30,500 if you're 50+)
• HSA: $4,150

Note again: These are educated estimates, awaiting IRS confirmation.

Why Limits Matter

The IRS caps your annual contributions to retirement accounts. Being aware of these limits ensures you can maximize tax benefits and plan effectively for your future.

Yearly Limit Changes

Inflation rates determine annual contribution changes. While 2023 saw significant hikes, 2024 increases are moderate due to a stable inflation rate.

Special Provisions for Those 50+

If you're 50 or older, you can make "catch-up" contributions to accelerate your retirement savings.

SECURE 2.0 Updates

This act has specific regulations that redefine catch-up contributions, especially for high-income individuals. These rules are delayed until 2026.

IRA Contributions for 2024

• Traditional IRA: Up to $7,000, or $8,000 for those 50+
• Roth IRA: Varies depending on your income and filing status

401(k) Contributions for 2024

• General Limit: $23,000, or $30,500 for those 50+
• Employer Match: Total contribution cap raised to $68,000

Employer-Specific Plans

• SEP IRA: Contributions cannot exceed 25% of an employee’s compensation or $69,000.
• SIMPLE IRA: Up to $16,000, or $19,500 for those 50+

If you have any questions about your retirement plan and your annual contribution limits, contact a specialist at Horizon Trust.?

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