Increases to 401(k) and IRA contributions for 2024 give you more options to boost your savings.
Putting away as much as possible—in as many ways as possible—for the future may have huge long-term value. In 2024, IRS increases to max 401(k) and IRA contributions make it feasible to put more money in your savings.
2024 retirement account contribution amounts
The IRS increased 2024 contribution limits for 401(k)s, 403(b)s, and IRAs. Some retirement plans have lower limits, so check the details of your allowable contributions. Generally, your human resources or benefits department is a good place to start.
| Account | 2024 contribution limit |
|---|---|
| 401(k), 403(b), most 457 plans, Thrift Savings Plan | $23,000 |
| Individual retirement account (IRA) | $7,000 |
| Roth IRA | $7,000 |
Catch-up contributions for 401(k)s and 403(b)s for people age 50 and older also increased to $7,500, but not for IRAs and Roth IRAs. Those remain at $1,000.
The IRS also increased health savings account (HSA) contribution limits for 2024 for both individuals and families (see below). As a reminder: The money you contribute to an HSA can be rolled over each year, it isn’t taxed, grows tax-free, and you’re not taxed when you withdraw funds for qualified medical expenses.
- 2024 HSA limit, self coverage: $4,150
- 2024 HSA limit, family coverage: $8,300
Income limits for IRA and Roth IRA contributions
There’s no phase-out income limit for IRAs—generally anyone making any amount of income can open and contribute to an IRA. (And yes, you can have an IRA even if you have a 401(k) or 403(b) through your work.) However, income limitations do apply to saving in a Roth IRA, which are made with after-tax dollars.
Phase-out limits
- IRA: None
- Roth IRA: Single/head of household: $146,000 to $165,000; married filing jointly: $230,000 to $240,000
Tax deduction limits for IRAs
Because Roth IRA contributions are made with after-tax dollars, they aren’t deductible on your taxes. But you may be able to deduct contributions to a traditional IRA; it’s dependent on income levels and whether or not you have a retirement plan through work. And the amounts you may be able to deduct increased for 2024. The IRS has more information; check with your tax professional for details on your situation.
What’s next?
How close are you to maxing out your contributions to your retirement plan? Log in to your Principal account to check. Don’t have an employer-sponsored retirement account? We can help you set up your own retirement savings with an IRA or Roth IRA.
