Retirement Planning
2 MIN ARTICLE
Retirement plan limits for 2023 and 2024
Defined contribution plans |
2023 |
2024 |
|---|---|---|
Maximum elective deferral: Pretax 401(k), 403(b), Roth 401(k) |
$22,500 |
$23,000 |
Catch-up contribution for 401(k) and 403(b) (50 years of age or older) |
$7,500 |
$7,500 |
Total maximum annual addition to defined contribution plan |
$66,000 |
$69,000 |
Maximum elective deferral: SIMPLE |
$15,500 |
$16,000 |
Catch-up contribution for SIMPLE plans (50 years of age or older) |
$3,500 |
$3,500 |
Limit on annual contribution to SEP (or 25% income) |
$66,000 |
$69,000 |
Maximum annual compensation considered |
$330,000 |
$345,000 |
Defined benefit plans |
2023 |
2024 |
|---|---|---|
Annual benefit limit under plan |
$265,000 |
$275,000 |
Individual retirement accounts (IRAs) |
2023 |
2024 |
|---|---|---|
Traditional and Roth IRA contribution limit |
$6,500 |
$7,000 |
Catch-up contribution limit (50 years of age and older) |
$1,000 |
$1,000 |
IRA and Roth IRA deduction and contribution phase-out limits for 2023 and 2024
Traditional IRA (MAGI* deduction phase-out) |
2023 |
2024 |
|---|---|---|
Single or head of household (if the individual is an active participant in another plan) |
$73,001–$82,999 |
$77,001–$86,999 |
Married filing jointly (if the individual is an active participant in another plan) |
$116,001–$135,999 |
$123,001–$142,999 |
Married filing jointly (if the individual is not an active participant but married to a spouse who is) |
$218,001–$227,999 |
$230,001–$239,999 |
Roth IRA AGI (MAGI* contribution phase-out) |
2023 |
2024 |
|---|---|---|
Single or head of household |
$138,001–$152,999 |
$146,001–$160,999 |
Married filing jointly |
$218,001–$227,999 |
$230,001–$239,999 |
Married filing separately (lived with spouse anytime during the tax year) |
$0 - $10,000 |
$0 - $10,000 |
*Modified adjusted gross income (MAGI) is adjusted gross income with certain deductions added back in, such as student loan interest, tuition and fees, foreign earned income exclusions, etc.
Uniform lifetime table for RMDs
The following table can be used to determine required minimum distributions (RMDs), unless your spouse is the sole beneficiary and more than 10 years younger. Note: For individuals born after June 30, 1950, first-time RMDs must be distributed by April 1 of the year following the year in which you reach age 73.
Age |
Distribution period |
|---|---|
72 |
27.4 |
73 |
26.5 |
74 |
25.5 |
75 |
24.6 |
76 |
23.7 |
77 |
22.9 |
78 |
22.0 |
79 |
21.1 |
80 |
20.2 |
81 |
19.4 |
82 |
18.5 |
83 |
17.7 |
84 |
16.8 |
85 |
16.0 |
86 |
15.2 |
87 |
14.4 |
88 |
13.7 |
89 |
12.9 |
90 |
12.2 |
91 |
11.5 |
92 |
10.8 |
93 |
10.1 |
94 |
9.5 |
95 |
8.9 |
96 |
8.4 |
97 |
7.8 |
98 |
7.3 |
99 |
6.8 |
100 |
6.4 |
Source: Internal Revenue Service
SUPPORTING MATERIALS
Wealth planning reference guide (PDF)
IRS uniform lifetime table
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