The IRS announced the 2024 benefit and contribution limits for qualified retirement plans, including contributions limits for Sec. 401(k) plans and individual retirement arrangements (IRAs), Wednesday, increasing the limits on both by $500.

Notice 2023-75 includes updates to dollar limits for a range of qualified retirement plans and accounts, including traditional and Roth IRAs.

The amount that individuals can contribute to Sec. 401(k) plans will increase to $23,000 in 2024, up from $22,500 in 2023. The new amount also applies to Sec. 403(b) and most Sec. 457 plans, as well as the federal government’s Thrift Savings Plan.

The limit on annual contributions to traditional and Roth IRAs increased to $7,000, and the IRA catch-up contribution limit for individuals 50 and older remains $1,000 for 2024.

The catch-up contribution limit for employees 50 and older who participate in 401(k), 403(b), and most 457 plans, and the federal government’s Thrift Savings Plan, remains $7,500 for 2024. This means that participants in these plans who are 50 and older can contribute up to $30,500 in 2024, the IRS said.

The amount individuals can contribute to their SIMPLE plan is increased to $16,000, up from $15,500. The catch-up contribution limit for employees 50 and older who participate in SIMPLE retirement accounts remains $3,500 for 2024.

The income ranges for determining eligibility to make deductible contributions to traditional individual retirement arrangements (IRAs), to contribute to Roth IRAs, and to claim the saver’s credit all increased for 2024.

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

For traditional IRAs, the phase-out ranges for 2024 are:

• 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 is increased to between $123,000 and $143,000, up from between $116,000 and $136,000.
• For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the phase-out range is increased to between $230,000 and $240,000, up from between $218,000 and $228,000.
• For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

The income phase-out range for taxpayers making contributions to a Roth IRA is increased to between $146,000 and $161,000 for singles and heads of household, up from between $138,000 and $153,000. For married couples filing jointly, the income phase-out range is increased 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 who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

The income limit for the saver’s credit (also known as the retirement savings contributions credit) for low- and moderate-income workers is $76,500 for married couples filing jointly, up from $73,000; $57,375 for heads of household, up from $54,750; and $38,250 for singles and married individuals filing separately, up from $36,500.

Details on these and other retirement-related cost-of-living adjustments for 2024 are in Notice 2023-75.