The IRS has released new guidelines for the 2024 Contribution Maximums for company-sponsored retirement plans and they’ve increased! If you’re not sure what they are, Leading Retirement Solutions has you covered.
Retirement Plan Maximum Contributions:
IRS guidelines detail the maximum income that an employee (including company owners) may contribute to a company-sponsored retirement plan as well as the maximum contributions an employee (including company owners) may receive from the business.
Contribution Highlights for 2024:
- $23,000 - The contribution maximum for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan.
- $345,000 - The amount of your compensation that can be taken into account when determining employer and employee contributions.
- $7,000 - The contribution maximum for employees who participate in IRAs. The IRA catch‑up contribution limit for individuals aged 50 and over was amended under the SECURE 2.0 Act of 2022 (SECURE 2.0) to include an annual cost‑of‑living adjustment but remains $1,000 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.
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Additional information can be found on the IRS website.
2024 Social Security Cost of Living Adjustment (COLA) Rates
SSA announced an increase of 3.2 percent for Social Security payouts. The cost-of-living adjustment (COLA) will begin with benefits payable to more than 66 million Social Security beneficiaries in January 2024. Increased payments to approximately 7.5 million SSI recipients will begin on December 29, 2023. (Note: some people receive both Social Security and SSI benefits)
If you're looking to start a plan, or just get more information about contribution maximums, don't hesitate to get in contact.
For tips and information regarding retirement plans, contact us.
