The IRS has released its annual guidance on inflation adjustments for retirement provisions in 2024. The key updates include:
- For 401(k) and similar defined contribution plans, the contribution limit for participating employees will rise to $23,000 from $22,500. The catch-up contribution for those aged 50 or older remains at $7,500 for 2024.
- IRA contribution limits will increase by $500 to $7,000. The catch-up contribution limit for individuals aged 50 and over will remain at $1,000.
- Notable phase-out ranges for IRAs:
- Single taxpayers with a workplace retirement plan: $77,000 – $87,000 (up from $73,000 – $83,000)
- Married couples filing jointly (if the contributing spouse has a workplace retirement plan): $123,000 – $143,000 (up from $116,000 – $136,000)
- IRA contributor not covered by a workplace retirement plan but married to someone who is covered: $230,000 – $240,000 (up from $218,000 – $228,000)
- Married individuals filing separate returns with a workplace retirement plan: Phase-out remains between $0 and $10,000.
- The dollar limitation under Internal Revenue Code section 416(i)(1)(A)(i) for “key employees” in top-heavy plans increases to $220,000.
- The limitation for the definition of “highly compensated employee” under section 414(q)(1)(B) rises to $155,000 from $150,000.
Various other inflation adjustments for retirement-related tax provisions are included in the guidance. For the complete details, please refer to the official Notice 2023-75.
This guidance ensures that the retirement planning landscape is in line with current economic conditions and needs.
Recent Posts
Why Smart Businesses Are Choosing NARFA Over Traditional Approaches Right Now
The Numbers Don't Lie: Healthcare Costs Are Exploding A new KFF report confirms what NARFA members already suspected: healthcare premiums are spiking 15% in 2026—the largest increase since [...]
Beyond Workers’ Comp: The Safety Investment That Pays for Itself
The $3.25 Question Every NARFA Member Should Ask A recent analysis estimated a $3.25 return for every $1.00 invested in the EAP for the typical [...]
Navigating Rising Healthcare Costs: How NARFA’s Programs Can Help Employers
The Challenge of High-Cost Medical Claims In 2024, employers faced a significant challenge with a 29% increase in $1 million medical stop-loss claims compared to [...]