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2024 retirement plan contribution limits

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Saving enough for retirement takes time, dedication and coordination. When you put money into an employer-sponsored plan or an individual retirement account (IRA), you get certain tax benefits as an incentive for saving for your future.

This article covers:

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Retirement plan contribution limits for 2024

Each account type has caps on how much you can put into them each year that can vary depending on the type of plan and type of contribution.

In addition, if you are 50 or older, many plans offer the opportunity to boost your savings with catch-up contributions.

Retirement plan

Employee/personal contribution limit

Catch-up limit if age 50 or older
Combined employee & employer contribution limit
401(k)
$23,000
$7,500
Lesser of $69,000 or 100% of your compensation
403(b)
$23,000
$7,500
Lesser of $69,000 or 100% of your compensation

457(b)

$23,000
$7,500
Lesser of $69,000 or 100% of your compensation

Roth 401(k)

$23,000
$7,500
Lesser of $69,000 or 100% of your compensation

Roth 403(b)

$23,000
$7,500
Lesser of $69,000 or 100% of your compensation

Roth 457(b)

$23,000
$7,500
Lesser of $69,000 or 100% of your compensation

Solo 401(k)

$23,000
$7,500
Lesser of $69,000 or 100% of your compensation

Traditional IRA

$7,000
$1,000
Not applicable

Roth IRA

$7,000
$1,000
Not applicable
SIMPLE IRA
$16,000
$3,500

Not applicable, but employers must make either matched contributions up to 3% of your compensation or fixed contributions of 2% of your compensation*

SEP IRA
Employers make contributions only
None
The lesser of $69,000 or 25% of your salary

Considerations for traditional & Roth IRAs

Traditional IRAs and Roth IRAs are both popular ways of building your assets for retirement, but they have different rules when it comes to contributions.

Traditional IRA contributions may be tax-deductible

You may be able to deduct the contributions that you make to a traditional IRA, which can reduce your taxable income.

  • If you make less than the minimum modified adjusted gross income (MAGI) listed, you can make a full tax deduction of contributions.
  • If you make between the MAGIs listed, you can make a partial deduction of contributions.
  • If you make equal to or more than the maximum MAGI listed, you can't deduct contributions.

Filing status
2024 MAGI limits for traditional IRA tax deduction
 

 

 

Married filing jointly or qualifying widow(er)

 
If the contributor is an active participant, or both spouses participate, in an employee-sponsored retirement plan: $123,000-$143,000

If the contributor is not an active participant (but the spouse does participate) in an employee-sponsored retirement plan: $230,000-$240,000      

 

 

Single or head of household

 

$77,000-$87,000

 

Married filing separately

Less than $10,000: Partial deduction available

Roth IRAs have income limits to participate

Unlike traditional IRAs, Roth IRAs have income limits to participate.

  • If you make less than the minimum MAGI listed, you can contribute to a Roth IRA.
  • If you make between the MAGIs listed, you can contribute to a Roth IRA but it will be a reduced amount.
  • If you make equal to or more than the maximum limit listed, you can't contribute anything to a Roth IRA. If this applies to you, see these alternatives.
Filing status
2024 maximum modified adjusted gross income (MAGI) to contribute to a Roth IRA

Single or head of household

$146,000-$161,000

Married filing jointly

$230,00-$240,000

Married filing separately

$0-$10,000

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Are your retirement savings on track?

Each decade of your working life serves as a guide to navigating the nuances of creating a strong retirement plan. We explore retirement saving milestones in your 30s, 40s, 50s and 60s.

See the guide

Tips for maximizing your retirement contributions

Consider these tips to make the most out of the investment that you're making into your retirement savings plan:

1. Make a plan to save regularly

To make sure you don't put your retirement savings on the back burner, consider either having the money deducted from your paycheck or setting up a monthly automatic account transfer.

2. Get the matching contribution

If you have an employer-sponsored account that offers matching contributions, make sure you're contributing enough to take advantage of the full match. If you don't, you're leaving free money on the table.

3. Leverage the maximums for all accounts

It's important to realize that contributing to one type of retirement account doesn't prevent you from contributing to another. For instance, if you have a 401(k) and are putting in enough to reach the employer match, consider next focusing on funding a traditional or Roth IRA that has a wider range of investment options. Once you max out on IRAs, go back to putting more in your 401(k).

4. Don't let limits restrict your savings

If you've hit the 401(k) contribution limits for 2024 or the max for other types of accounts, it doesn't mean you have to stop saving. Consider other investment options that could help your money grow, such as brokerage accounts or mutual funds.

5. Beware of penalties for overfunding

Keep in mind as you aim to max out your tax-advantaged retirement savings options that it is possible to go over the limit, and you may end up having to pay taxes and penalties on the overage.

  • If you contribute too much to an employer-sponsored account, such as a 401(k), you could end up being taxed and penalized on the amount you overcontributed unless you take out the excess by the tax filing deadline. And if you haven't yet reached age 59½, you'll likely also have to pay a 10% early withdrawal penalty on the earnings.
  • If you overcontribute to an IRA, you'll owe a 6% excise tax if you don't remove the excess before your tax filing deadline. Any earnings will be taxed when you remove the excess contribution.

Need help with your retirement plan?

Making sure you save enough is a critical component of retirement planning. In addition to benefiting you personally, it can protect those you care about by preventing you from requiring financial support from them later in life.

It's a good idea to review your plan at the end of each year to make sure you're taking full advantage of the tax benefits retirement plans offer without crossing any limits. For experienced guidance on retirement planning, consider connecting with a Thrivent financial advisor. They'll factor in your particular situation and unique needs and goals to create a retirement plan that works for you.

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*Employers may make uniform additional contributions for each SIMPLE plan employee to the lesser of up to 10% of compensation or $5,000 (inflation-adjusted).

Thrivent and its financial advisors and professionals do not provide legal, accounting or tax advice. Consult your attorney or tax professional.

Investing involves risk, including the possible loss of principal. The product prospectus, portfolios' prospectuses and summary prospectuses contain more complete information on investment objectives, risks, charges and expenses along with other information, which investors should read carefully and consider before investing. Available at thrivent.com.
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