Retirement Planning
Retirement plan contribution and deduction limits for 2023 and 2024

2 MIN ARTICLE

TABLE OF CONTENTS

Retirement plan limits for 2023 and 2024


Defined contribution plans

2023

2024

Maximum elective deferral: Pretax 401(k), 403(b), Roth 401(k)

$22,500

$23,000

Catch-up contribution for 401(k) and 403(b) (50 years of age or older)

$7,500

$7,500

Total maximum annual addition to defined contribution plan

$66,000

$69,000

Maximum elective deferral: SIMPLE

$15,500

$16,000

Catch-up contribution for SIMPLE plans (50 years of age or older)

$3,500

$3,500

Limit on annual contribution to SEP (or 25% income)

$66,000

$69,000

Maximum annual compensation considered

$330,000

$345,000

Defined benefit plans

2023

2024

Annual benefit limit under plan

$265,000

$275,000

Individual retirement accounts (IRAs)

2023

2024

Traditional and Roth IRA contribution limit

$6,500

$7,000

Catch-up contribution limit (50 years of age and older)

$1,000

$1,000

 

IRA and Roth IRA deduction and contribution phase-out limits for 2023 and 2024


Traditional IRA (MAGI* deduction phase-out)

2023

2024

Single or head of household (if the individual is an active participant in another plan)

$73,001–$82,999

$77,001–$86,999

Married filing jointly (if the individual is an active participant in another plan)

$116,001–$135,999

$123,001–$142,999

Married filing jointly (if the individual is not an active participant but married to a spouse who is)

$218,001–$227,999

$230,001–$239,999

Roth IRA AGI (MAGI* contribution phase-out)

2023

2024

Single or head of household

$138,001–$152,999

$146,001–$160,999

Married filing jointly

$218,001–$227,999

$230,001–$239,999

Married filing separately (lived with spouse anytime during the tax year)

$0 - $10,000

$0 - $10,000

*Modified adjusted gross income (MAGI) is adjusted gross income with certain deductions added back in, such as student loan interest, tuition and fees, foreign earned income exclusions, etc.

 

Uniform lifetime table for RMDs


The following table can be used to determine required minimum distributions (RMDs), unless your spouse is the sole beneficiary and more than 10 years younger. Note: For individuals born after June 30, 1950, first-time RMDs must be distributed by April 1 of the year following the year in which you reach age 73.


 

Age

Distribution period

72

27.4

73

26.5

74

25.5

75

24.6

76

23.7

77

22.9

78

22.0

79

21.1

80

20.2

81

19.4

82

18.5

83

17.7

84

16.8

85

16.0

86

15.2

87

14.4

88

13.7

89

12.9

90

12.2

91

11.5

92

10.8

93

10.1

94

9.5

95

8.9

96

8.4

97

7.8

98

7.3

99

6.8

100

6.4

Source: Internal Revenue Service

SUPPORTING MATERIALS

Wealth planning reference guide (PDF)

IRS uniform lifetime table


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Retirement Planning
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