Contribution Guidelines Increase Savings for Taxpayers in 2024.
Those who are participating in retirement plans will witness an increase in contribution limits from $22,500 to $23,000. These plans include: 401(k), 403(b), and a majority of the 457 plans, including Thrift Savings Plan. Additionally, the annual contribution limits for individual retirement accounts (IRAs) will rise from $6,500 to $7,000.
With that said, the IRS has opted to maintain the IRA catch-up contribution limit for individuals aged 50 and over at $1,000. IRS confirms the catch-up contribution limit remains $7,500 for employees aged 50 and over for various plans in 2024. In addition, individuals aged 50+ enrolled in programs can potentially contribute up to $30,500 starting in 2024, per the IRS.
Contributions: Saver’s Credit
The IRS did not adjust the IRA catch-up contribution limit as per SECURE 2.0. Additionally, the Income ranges are what determines the contribution limits (Tractional & Roth IRAs) and eligibility to claim the Saver’s Credit. The deductibility of contributions to a traditional IRA is subject to specific conditions. Deduction reductions are based on the filing status and who has a workplace retirement plan. The changes in limits are as follows:
| Status | Who is Covered? | Old Limit | New Limit |
| Single | Themselves | $73,000 – $83,000 | $77,000 – $87,000 |
| Married Filing Jointly | Spouse contributing is also covered. | $116,000 -$136,000 | $123,000 – $143,000 |
| Married Filing Jointly | Spouse not contributing is covered. | $218,000 – 228,000. | $230,000 – $240,000 |
| Married Filing Separately | Themselves | $0 and $10,000 | No Change |
In addition, the income threshold for the Saver’s Credit is increasing for low- and moderate-income earners as follows:
- Married couples filing jointly will see an increase to $76,500, up from $73,000.
- Heads of household will experience an increase to $57,375, raised from $54,750.
- Fliers single or married filing separately, the limit has raised to $38,250 from $36,500.
To read more about the limits, and more details on the SECURE 2.0. or Saver’s Credit changes, visit Internal Revenue Service | An official website of the United States government (irs.gov).
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