Retirement Plans

Pre-Tax or Roth? Your 401(k) Options Explained

May 22, 2023 – Brandon Dingman If you’ve contributed to your company’s retirement plan, you have probably faced the decision of contributing pre-tax dollars or after-tax dollars. Although pre-tax is the traditional option for 401(k) contributions, many plans now offer Roth after-tax contributions as well. When deciding between the two options, it is important to…

How to Assess the Top Five Risks in Retirement

April 24, 2023 – Ryan Berning The single biggest risk retirees face is using up all their resources in retirement. The good news is there are options to mitigate that risk. For many, the vision of a successful retirement is having the freedom to pursue hobbies, travel and spend time with friends and family without…

Retirement Plans – IRS Indexed Limits for 2024

The IRS indexed dollar limits to qualified retirement plans for 2024 are provided in the table below. This update is provided for informational purposes and not intended as legal advice.

Item IRC Reference 2024 Limit 2023 Limit
401(k) and 403(b) Employee Limit1 402(g)(1) $23,000 $22,500
457 Employee Deferral Limit 457(e)(15) $23,000 $22,500
Catch-up Contribution2 414(v)(2)(B)(i) $7,500 $7,500
Defined Contribution Dollar Limit (age 49 or younger) 415(c)(1)(A) $69,000 $66,000
Defined Benefit Dollar Limit 415(b)(1)(A) $275,000 $265,000
Compensation Limit for calculating contributions3 401(a)(17); 404(l) $345,000 $330,000
Highly Compensated Employee Income Limit4 414(q)(1)(B) $155,000 $150,000
Key Employee Officer 416(i)(1)(A)(i) $220,000 $215,000
Social Security Taxable Wage Base $168,600 $160,200

Individual Accounts – IRS Indexed Limits for 2024

Item IRC Reference 2024 Limit 2023 Limit
Limit on employee contributions to 401(k), 403(b), or 457 plan $23,000 $22,500
Limit on age 50+ catchup contributions to 401(k), 403(b), or 457 plan $7,500 $7,500
Traditional & Roth IRA contribution limits $7,000 $6,500
Traditional and Roth IRA age 50+ catchup contribution limit $1,000 $1,000

Individual Accounts – Deductibility Phase Out Limits for 2024

Item IRC Reference 2024 Limit 2023 Limit
Deductible IRA income limit, single active participant in workplace retirement plan 25B(b)(1)(C)
25B(b)(1)(D)
$77,000
$87,000
$73,000
$83,000
Deductible IRA income limit, Married filing jointly
Active participant in workplace retirement plan
219(g)(3)(B)(i)
219(g)(3)(B)(ii)
$123,000
$143,000
$116,000
$136,000
Deductible IRA income limit, spouse is active participant in workplace retirement plan 219(g)(7)(A) $230,000
$240,000
$218,000
$228,000
Roth IRA income limit, single 408A(c)(3)(A) $146,000
$161,000
$138,000
$153,000
Roth IRA income limit, married filing jointly 408A(c)(3)(A) $230,000
$240,000
$218,000
$228,000
SIMPLE 401(k) or SIMPLE IRA contributions limit $16,000 $15,500
SIMPLE 401(k) or SIMPLE IRA age 50+ catchup contributions limit $3,500 $3,500

View previous year information here.

1 Employee deferrals to all 401(k) and 403(b) plans must be aggregated for purposes of this limit. A lower limit applies to SIMPLE plans.
2 Available to employees age 50 or older during the calendar year. A lower limit applies to SIMPLE plans
3 All compensation from a single employer must be aggregated for purposes of this limit.
4 For the 2024 plan year, an employee who earns more than $155,000 in 2023 is a HCE.