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Investing

Here are the 401(k) and IRA contribution limits for 2024

There's more room to max out your retirement accounts this year.

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A new year means a new opportunity to boost your retirement savings. Increasing contributions to your 401(k) or IRAs can get you there, but you should be aware of the limits.

The IRS sets annual caps on contributions to both workplace and individual retirement plans. These limits fluctuate to keep up with inflation, though they may not change from year to year.

The 401(k) and IRA contribution maximums did increase for 2024, however, which means Americans can contribute even more to their nest eggs.

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401(k) contribution limits for 2024

Workers who contribute to a 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan can contribute up to $23,000 in 2024, a $500 increase from the $22,500 limit in 2023. Spread evenly across 12 months, that's a cap of about $1,917 a month, or $958 per twice-monthly paycheck.

The limit on additional catch-up contributions for employees 50 or older is $7,500, the same as in 2023. So, for those individuals, the total 401(k) contribution cap is $30,500.

The maximum contribution set by the IRS doesn't include what your employer can contribute in matching funds. The limit on combined employee and employer contributions is $69,000, up from $66,000 in 2023.

The catch-up contribution for employees 50 and older who contribute to a SIMPLE IRA remains $3,500.

More help: How to save for retirement with a 401(k)

Some 401(k) plans allow employees to make after-tax contributions to reach the combined employee and employer contribution limit.

For example, say you maxed out 401(k) contributions in 2024 and your employer matched, that would only bring you to $46,000. If your plan allows, you could make additional after-tax contributions of up to $23,000 to meet the combined employee/employer limit of $69,000 for the year. Unless rolled over to an IRA, the earnings on these after-tax contributions are tax-deferred, so tax is due when you withdraw.

IRA contribution limits for 2024

The limit for both traditional and Roth IRAs is $7,000 total from among all accounts, a $500 increase from the $6,500 limit in 2023. That breaks down to roughly $583 a month, or $292 per twice-monthly pay period.

Individuals 50 or older can make an additional $1,000 catch-up contribution, bringing their total IRA contribution limit to $8,000.

The income thresholds to be eligible for a Roth IRA are also higher in 2024. For single and head-of-household taxpayers, the income phase-out range is between $146,000 and $161,000, up from between $138,000 and $153,000 in 2023.

Married couples filing jointly have a higher income phase-out range, too, between $230,000 and $240,000, up from between $218,000 and $228,000.

For married couples filing separately, the income phase-out range remains between $0 and $10,000.

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Which retirement account should you contribute to?

Because 401(k) plans have higher limits than IRAs, it's usually a good idea to enroll in a 401(k) if your employer offers one — especially if they match contributions. A 401(k) allows you to defer paying taxes until you withdraw funds in retirement, letting your money grow tax-deferred.

You should also consider adding a Roth IRA. Contributions are typically made with after-tax money, which means your withdrawals later are tax-free. The different tax advantages and withdrawal options available in a 401(k) and a Roth IRA can help keep your retirement portfolio diversified.

Even if you don't have access to a 401(k), a Roth IRA is still a smart choice — especially if you expect to be in a higher tax bracket when you retire.

You can find Roth IRAs at many top brokerages. We like the Roth IRA options that Fidelity offers since savers can choose to have Fidelity pick and manage their investments via the Fidelity Go® Roth IRA option or they can do it themselves.

Fidelity Investments

  • Minimum deposit and balance

    Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No minimum to open a Fidelity Go® account, but minimum $10 balance according to the investment strategy chosen

  • Fees

    Fees may vary depending on the investment vehicle selected. Zero commission fees for stock, ETF, options trades and some mutual funds; zero transaction fees for over 3,400 mutual funds; $0.65 per options contract. Fidelity Go® has no advisory fees for balances under $25,000 (0.35% per year for balances of $25,000 and over and this includes access to unlimited 1-on-1 coaching calls from a Fidelity advisor)

  • Bonus

    Find special offers here

  • Investment vehicles

    Robo-advisor: Fidelity Go® IRA: Traditional, Roth and Rollover IRAs Brokerage and trading: Fidelity Investments Trading Other: Fidelity Investments 529 College Savings; Fidelity HSA®

  • Investment options

    Stocks, bonds, ETFs, mutual funds, CDs, options and fractional shares

  • Educational resources

    Extensive tools and industry-leading, in-depth research from 20-plus independent providers

Terms apply.

Charles Schwab is also a Gold Standard choice when looking for retirement-saving vehicles. Schwab can help you decide what IRA is right for you and offers retirement tools like planning calculators.

Charles Schwab

  • Minimum deposit and balance

    Minimum deposit and balance requirements may vary depending on the investment vehicle selected. No account minimum for active investing through Schwab One® Brokerage Account. Automated investing through Schwab Intelligent Portfolios® requires a $5,000 minimum deposit

  • Fees

    Fees may vary depending on the investment vehicle selected. Schwab One® Brokerage Account has no account fees, $0 commission fees for stock and ETF trades, $0 transaction fees for over 4,000 mutual funds and a $0.65 fee per options contract

  • Bonus

    None

  • Investment vehicles

    Robo-advisor: Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™ IRA: Charles Schwab Traditional, Roth, Rollover, Inherited and Custodial IRAs; plus, a Personal Choice Retirement Account® (PCRA) Brokerage and trading: Schwab One® Brokerage Account, Brokerage Account + Specialized Platforms and Support for Trading, Schwab Global Account™ and Schwab Organization Account

  • Investment options

    Stocks, bonds, mutual funds, CDs and ETFs

  • Educational resources

    Extensive retirement planning tools

Terms apply.

Bottom line

Both 401(k) plans and IRAs are key savings tools for a healthy retirement. Make the most of their benefits by contributing the maximum amount allowed this year.

Why trust CNBC Select?

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every retirement article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of investing products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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