IRS Reveals Newly Revised Retirement Contribution Limits for 2024

Contact Your Elected Officials
The Epoch Times Header

The new changes allow 401(k) participants aged 50 and above to contribute up to $30,500 towards their retirement.

Contribution limits for retirement plans like 401(k) and Individual Retirement Account (IRA) have been raised by $500 for the next year, according to a recent update by the Internal Revenue Service (IRS).

“The contribution limit for employees who participate in 401(k), 403(b), and most 457 plans, as well as the federal government’s Thrift Savings Plan, is increased to $23,000, up from $22,500,” the IRS said on Nov. 1. “The limit on annual contributions to an IRA increased to $7,000, up from $6,500.” The catch-up contributions for both retirement accounts have been kept the same. For IRA, the catch-up contribution is set at $1,000 for 2024, while for 401(k), it remains at $7,500.

A catch-up contribution allows individuals aged 50 and above to make additional contributions to their IRS or 401(k) accounts. Such individuals are closer to the age of retirement and, thus, have less time to grow their assets.

“Participants in 401(k), 403(b), and most 457 plans, as well as the federal government’s Thrift Savings Plan who are 50 and older can contribute up to $30,500, starting in 2024,” the agency noted, referring to the $23,000 contribution limit and $7,500 catch-up contribution.

The $500 boost in contribution limits for 401(k) and IRA plans can help customers boost their tax-free savings.

As far as 401(k) accounts are considered, contributions come directly from an employee’s salary prior to charging taxes. A larger contribution limit, therefore, indicates that individuals can build up a bigger pre-tax retirement fund. Moreover, $500 in extra contribution allows the person to have a lower taxable income.

Like with 401(k), the $500 increase in contribution means the extra money will grow tax-free in the account. For IRA accounts, the IRS may allow deducting contributions from the income tax return.

“Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year, either the taxpayer or the taxpayer’s spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income,” said the IRS.

“If neither the taxpayer nor the spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.”

By Naveen Athrappully

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

President Trump’s UN Message: Strength in an Age of Folly 

President Donald Trump delivered a speech at the UN General Assembly this week that was equal parts indictment and invitation.

Zelensky Is Manipulating Trump Into A Disaster Of Epic Proportions

Trump’s flip-flop on Ukraine is leading to Trump's manipulation by Zelensky into a disaster of epic proportions if Trump doesn’t soon wise up.  

Pregnant TikTok Goblins Gobble Tylenol, Demand #AutismAcceptance

HHS Sec. RFK Jr. and President Trump announced findings that Tylenol use in pregnant women and babies may be associated with increased risk of autism.

Is Charlie Kirk’s Assassination Looking More Like a Conspiracy?

Enough videos have been posted to the internet, plenty...

Fox News Exploits MN Church Massacre to Push AI ‘Early Intervention’ Crime Suppression

Don’t let the technocrats’ performative empathy and calls for prayer in aftermath of a man-made disaster deceive; dead kids are golden opportunities for the national security state.

Former FBI Director James Comey Indicted on Federal Charges

Federal prosecutors on Thursday announced they had won an indictment of former FBI Director James Comey in federal courts.

Artemis II Crew Says Success Means Being ‘Forgotten’

Artemis II Commander Reid Wiseman hopes his moon mission will be “forgotten” someday, as it paves the way for even more historic spaceflights.

Commerce Department Opens Tariff Investigations Into Medical Equipment, Robotics, Industrial Machinery

U.S. Commerce Dept reviewing national security risks of imported PPE, medical supplies, robotics, and industrial machinery to safeguard critical sectors.

US Attorneys Will Make Determination on Possible Comey Indictment: Trump

U.S. attorneys will make a determination on a possible indictment of former FBI Director James Comey, President Donald Trump said on Sept. 25.

Trump Signs Deal to Put TikTok Under US Ownership

President Trump approved the TikTok U.S. deal, signing an EO that will give China-based ByteDance 120 days to finalize terms with American investors.

Secret Service Investigating Alleged Sabotage of UN Escalator

Trump said Secret Service probing “sabotage” at U.N. headquarters, saying malfunctions with sound, escalator, and teleprompter interfered with his speech.

US Will Use Tariff Revenue to Help Farmers: Trump

President Donald Trump said on Sept. 25 that he would use tariff revenue to provide aid to American farmers until his import levies start to benefit them.

Trump to Host Turkish President Erdogan to Discuss Trade, Defense

President Trump will welcome Turkish President Erdogan to the White House on Sept. 25 to discuss a Boeing deal and bilateral issues.
spot_img

Related Articles

Popular Categories

MAGA Business Central