401(k) & IRA Contribution Limits Increase for 2024

One silver lining to the high inflation we’ve seen recently is that 401(k) and IRA contribution limits have increased for 2024.  This provides investors the opportunity to allocate additional funds into tax advantaged accounts.

• The IRA annual contribution limit rises to $7,000 for those under 50, or $8,000 if you’re 50 or older ($500 increases).

• The annual 401(k) contribution limit increases to $23,000 per individual for those under 50 in 2024 (up from $22,500).

• The 401(k) contribution limit increases to $30,500 per individual for those 50 or older in 2024 (up from $30,000).

Can I contribute to both a 401(k) and an IRA in the same year?

Yes, you can contribute up to the limit for both a 401(k) and an IRA each year.  If you don’t receive a match on your 401(k), or it has narrow investment options or high fees, it may be a good idea to prioritize investing within your IRA.

We are here to help you answer questions about potentially increasing your contributions, which investment accounts to prioritize, or determining how much of your monthly budget should be allocated towards saving and investing.  If you are looking to optimize your retirement, please don’t hesitate to reach out!

-Brian Lipsett

The contribution limit information can be found in full detail on irs.gov.

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