2024 IRS Retirement Contribution Limits

Key Sections

• 2024 IRS Contribution Limits for 401(k) Accounts
• 2024 IRS Contribution Limits for Traditional and Roth IRA Accounts
• 2024 Contribution Limits for SIMPLE Retirement Accounts
• 2024 Taxpayer deductions
• Savers Credit
• Strategies to Maximize Your Savings within the Contribution Limits
• Invest in Cryptocurrencies with your retirement Account
• Conclusion

As we look ahead to the year 2024, it is important to understand the impact of IRS contribution limits on your retirement savings. These limits are set by the Internal Revenue Service (IRS) to regulate the maximum amount of money you can contribute to specific retirement accounts. With the recent release of the 2024 contribution limits as documented in Notice 2023-75, adhering to these guidelines enables you to optimize the available tax advantages and establish a solid financial footing for the future. 

2024 IRS Contribution Limits for 401(k) Accounts 

For 2024, the IRS has increased the contribution limits for 401(k), 403(b), and most 457 plans, as well as the federal government’s Thrift Savings Plan to $23,000, up from $22,500. However, for those who are 50 years or older, an additional catch-up contribution of $7,500 is allowed, bringing the total limit up to a possible $30,500 for 2024. It is important to note that these limits may be subject to change based on inflation adjustments, so it is crucial to stay updated with the latest information from the IRS.    

2024 IRS Contribution Limits for Traditional and Roth IRA Accounts 

For 2024, the IRS has set the contribution limits for both traditional and Roth IRA accounts at $7,000 for individuals under the age of 50. For individuals who are 50 years or older, an additional catch-up contribution of $1,000 remains, bringing the total limit up to a possible $8,000. These limits are applicable to both traditional and Roth IRAs, providing individuals with flexibility in choosing the type of account that suits their financial goals and tax preferences. 

2024 Contribution Limits for SIMPLE Retirement Accounts 

For small business owners and self-employed individuals, the Savings Incentive Match Plan for Employees (SIMPLE) Retirement Account offers a viable option for retirement savings. In 2024, the IRS has set the contribution limit for SIMPLE Retirement Accounts up to $16,000, an increase from $15,500 for individuals under the age of 50. For individuals who are 50 years or older, an additional catch-up contribution of $3,500 is allowed, bringing the total limit to a possible $19,500.  

2024 Taxpayer deductions  

Taxpayers may claim deductions for contributions to a traditional IRA under specific conditions. If either the taxpayer or their spouse was covered by an employer-sponsored retirement plan during the year, the deduction might be reduced and eventually phased out based on their filing status and income. (No phase-outs apply if neither the taxpayer nor their spouse is covered by an employer-sponsored retirement plan.) Here are the 2024 phase-out ranges: 

• For single taxpayers covered by a workplace retirement plan, the phase-out range is increased to between $77,000 and $87,000, up from between $73,000 and $83,000.
• For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range increased to between $123,000 and $143,000, up from $116,000 to $136,000. 
• If an IRA contributor is not covered by a workplace retirement plan but is married to someone who is, the phase-out range increased to between $230,000 and $240,000, up from $218,000 to $228,000. 
• Married individuals filing separate returns, who are covered by a workplace retirement plan, maintain a phase-out range of between $0 and $10,000 without an annual cost-of-living adjustment. 

The income phase-out range for Roth IRA contributions will also see changes for 2024: 

• Singles and heads of household making Roth IRA contributions will see the income phase-out range increase to between $146,000 and $161,000, up from between $138,000 and $153,000.   
• For married couples filing jointly, the income phase-out range is raised to between $230,000 and $240,000, up from between $218,000 and $228,000.    
• The phase-out range for a married individual filing a separate return making contributions to a Roth IRA remains between $0 and $10,000 without an annual cost-of-living adjustment. 

Savers Credit 

The income limit for the Saver’s Credit (Retirement Savings Contributions Credit) is adjusted as follows: 

• $76,500 for married couples filing jointly, up from $73,000. 
• $57,375 for heads of household, up from $54,750. 
• $38,250 for singles and married individuals filing separately, up from $36,500.

Additional changes introduced under SECURE 2.0 include:  

• A limitation of $200,000 on premiums paid for qualifying longevity annuity contracts, which remains unchanged for 2024. 
• An adjustment to the deductible limit on charitable distributions, increasing to $105,000 in 2024, up from $100,000. 
• A deductible limit for a one-time election to treat a distribution from an individual retirement account, made directly by the trustee to a split-interest entity, which rises to $53,000 in 2024, up from $50,000. 

Strategies to Maximize Your Savings within the Contribution Limits 

While contribution limits may appear restrictive, there are strategies you can employ to maximize your savings within these limits. One effective strategy is to contribute consistently throughout the year, rather than waiting until the last minute. By spreading out your contributions, you can take advantage of dollar-cost averaging and potentially benefit from market fluctuations. Additionally, consider automating your contributions to ensure consistent savings without the need for manual intervention. 

Another strategy is to take advantage of employer matching contributions with your 401(k) account. If your employer offers a matching program, contribute at least enough to maximize the matching contribution. This is essentially free money that can significantly boost your retirement savings. It is important to understand your employer’s matching policy and contribute accordingly to make the most of this opportunity. 

Finally, there is a well-known financial strategy called the Backdoor Roth IRA strategy, specifically tailored for high-income individuals seeking to harness the advantages of a Roth IRA, even when their income surpasses the phase-out range for making contributions. The essence of this approach involves making a non-deductible contribution to a traditional IRA and subsequently executing a conversion to a Roth IRA. In effect, this strategy enables you to tap into the potential for tax-free growth inherent to Roth IRAs, even if you don’t meet the criteria for direct contributions. 

Invest in Cryptocurrencies with your retirement Account 

Investing in a Bitcoin IRA for retirement offers significant benefits. It allows portfolio diversification beyond traditional assets, potentially enhancing returns. Bitcoin may provide protection against inflation and economic uncertainties due to its decentralized nature. Additionally, it grants full control over retirement investments, empowering individuals to make their own investment decisions and seize market opportunities. 

Conclusion 

Understanding and maximizing the 2024 IRS contribution limits is crucial for effective retirement planning. By adhering to these limits, you can make the most of the tax advantages offered by different retirement accounts and secure your financial future. Evaluate your options, consider your financial goals, and explore strategies to maximize your savings within the contribution limits. Consider including cryptocurrencies in your retirement account for 2024, start planning today and take control of your savings for a comfortable retirement. 

Open an account at BitcoinIRA today and start maximizing your retirement savings. For questions contact our customer support by calling us at 8665701947, sending us an email to [email protected] or scheduling a call with a Bitcoin IRA Specialist.  

1. Bitcoin IRA is a platform that connects consumers to qualified custodians, digital wallets and cryptocurrency exchanges. The company is not a custodian, is not a digital wallet and is not an exchange. The information provided in this article is for educational purposes only. We encourage you to consult an adviser or professional to determine whether Bitcoin IRA makes sense for you.