Happy 2024!

For 2024, there are plenty of changes which impact IRA’s and 401K’s. There could be additional changes later in the year of course with some big changes expected for 2025.

For 401K/403B/457:

  • The maximum employee contribution has been increased from $22,500 to $23,000. The catch-up contribution for employees age 50 and over remains at $7,500 for a total of $30,500. NOTE: in 2025, employers must put the employee catch-up contribution into a Roth 401K. Some employers are offering the option to do that in 2024 so check with your employer or plan administrator if you are interested in doing this. We can call with you as needed.

For Traditional IRA’s:

  • Contribution limit has been increased to $7,000 from $6,500. The catch-up contribution for those age 50 and over is $1,000 for a total of $8,000. The income tax deductibility level has also been increased. We will review with you individually as needed.

For ROTH IRA’s:

  • Contribution limit increased to lower of earned income or $7,000 for each spouse. Catch-up contribution of additional $1,000 for age 50 and over.
  • Contribution eligibility has increased:
    • Full contribution with Adjusted Gross Income (AGI) less than $146,00,000 for a single taxpayer. Phase-out between $146,000 and $161,000. We can help with the phase-out math.
    • Full contribution for each with total Adjusted Gross Income (AGI) less than $230,000 for married/filing jointly taxpayers. Phase-out between $230,000 and $240,000. We can help with the phase-out math.
  • 2023 contributions (of $6,500 or $7,500 if age 50 or over) can be made until April 15, 2024. Let us know if you plan to do this so we can ensure the deposit gets applied to the correct year.

Call with questions or if we can help get these changes made for you.