{"id":8814,"date":"2023-11-02T09:20:28","date_gmt":"2023-11-02T16:20:28","guid":{"rendered":"https:\/\/springwaterwealth.com\/?p=8814"},"modified":"2023-11-02T09:20:55","modified_gmt":"2023-11-02T16:20:55","slug":"irs-announces-2024-retirement-plan-limits","status":"publish","type":"post","link":"https:\/\/springwaterwealth.com\/irs-announces-2024-retirement-plan-limits\/","title":{"rendered":"IRS announces 2024 retirement plan limits"},"content":{"rendered":"

The 2024 retirement plan limits have recently been announced by the IRS<\/strong><\/a>.<\/p>\n

These new limits are effective January 1, 2024.<\/p>\n

If you\u2019re an employee and a retirement plan participant, be sure to contact your employer as soon as possible if you wish to change your retirement plan salary deferrals for 2024. Of course, if you\u2019re a Springwater client, we\u2019re happy to assist!<\/p>\n

If you\u2019re an employer and either don\u2019t have a retirement plan in place or have questions about your existing one, please contact us for a complimentary tailor-made proposal and comparison with your current plan. You\u2019ll have happier, more satisfied employees while also saving money.<\/p>\n

Do you have questions about saving and investing for retirement? Contact us today to see how our team at Springwater Wealth can help you.<\/strong><\/a><\/span><\/h2>\n


\n401(k)s, 403(b)s, etc<\/strong>. The standard contribution limit for employee salary deferrals to a qualified retirement plan \u2013 401(k), 403(b), most 457 plans, and the government\u2019s Thrift Savings Plan \u2013 is increased to $23,000 for 2024 (was $22,500 for 2023).<\/p>\n

The \u201cCatch-up\u201d<\/strong>. The \u201ccatch-up\u201d deferral limit for these plans remains at $7,500 for 2024 (was $7,500 in 2023), so a person who is age 50 or older can defer a maximum of $30,500 in 2024 ($23,000 regular deferral plus a $7,500 catch-up).<\/p>\n

Annual Defined Contribution Limit<\/strong>. The maximum \u201cannual additions\u201d limit (salary deferrals, plus profit sharing, plus forfeiture allocations, etc) to a defined contribution plan is increased to $69,000 for 2024 (was $66,000 for 2023). Note that the catch-up deferral is in addition to this, so the annual contribution limit for a person age 50 or older is $76,500.<\/p>\n

SEP IRAs<\/strong>. The contribution limit for a SEP IRA in 2024 is increased to the lesser of (a) $69,000, or (b) 25% of the employee\u2019s salary (was $66,000 in 2023). [Note that a special computation is required to determine the contribution amount for self-employed individuals contributing for themselves]. The compensation limit used in the savings calculation is increased to $345,000 for 2024 (was $330,000 for 2023).<\/p>\n

Solo 401(k)s<\/strong>. The contribution limit for a Solo 401(k) in 2024 is increased to the lesser of (a) $69,000, or (b) 100% of the employee\u2019s salary. Note that the catch-up deferral is in addition to this, so the annual contribution limit for a person age 50 or older is $76,500.<\/p>\n

IRAs<\/strong>. The contribution limits for Traditional and Roth IRAs is increased to $7,000 in 2024 (was $6,500 in 2023). The catch-up contribution for a person age 50 or older remains at $1,000 in 2024, for a total of $8,000.<\/p>\n

Simple IRAs<\/strong>. The contribution limit for a Simple IRA is increased to $16,000 for 2024 (was $15,500 in 2023). The catch-up contribution for a person age 50 or older remains at $3,500 in 2024 (was $3,500 in 2023), for a total of $19,500.<\/p>\n

Defined Benefit Plans<\/strong>. Finally, the limitation on the annual benefit of a \u201cdefined benefit\u201d plan is increased to $275,000 in 2024 (was $265,000 in 2023).<\/p>\n

PLEASE SEE important disclosure information at springwaterwealth.com\/blog-disclosure\/<\/a><\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

The 2024 retirement plan limits have recently been announced by the IRS. These new limits are effective January 1, 2024. If you\u2019re an employee and a retirement plan participant, be sure to contact your employer as soon as possible if you wish to change your retirement plan salary deferrals for 2024. Of course, if you\u2019re […]<\/p>\n","protected":false},"author":2,"featured_media":5601,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_mi_skip_tracking":false,"footnotes":""},"categories":[5,7,11],"tags":[13,14,86,88,107,117,118,119,122,124],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/posts\/8814"}],"collection":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/comments?post=8814"}],"version-history":[{"count":2,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/posts\/8814\/revisions"}],"predecessor-version":[{"id":8816,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/posts\/8814\/revisions\/8816"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/media\/5601"}],"wp:attachment":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/media?parent=8814"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/categories?post=8814"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/tags?post=8814"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}