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.
