The Internal Revenue Service has announced that the amount individuals can contribute to their 401(k) plans in 2024 has increased to $23,000, up from $22,500 for 2023. Additionally, the limit on annual contributions to an IRA increased to $7,000, up from $6,500. The catch-up contribution limit for employees aged 50 and over who participate in 401(k) plans remains unchanged at $7,500 for 2024.
Click here for the full text of the IRS’s announcement. You can also access newly issued technical guidance regarding all of the cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2024 in Notice 2023-75PDF.