---
title: The IRS Has Announced Increased Retirement Plan Benefits for 2024
description: With the 2024 tax year right around the corner, there's good news coming from the IRS. According to a recent announcement from the tax agency...
---

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# [The IRS Has Announced Increased Retirement Plan Benefits for 2024](https://blog.portebrown.com/the-irs-has-announced-increased-retirement-plan-benefits-for-2024)

 Written by [Porte Brown](https://blog.portebrown.com/author/porte-brown-llc) | Nov 23, 2023 7:30:00 AM

**With the 2024 tax year** right around the corner, there's good news coming from the IRS. According to a recent announcement from the tax agency (Notice 2023-75), there will be increases to retirement plan contributions next year due to inflation adjustments.

Here's a rundown of some of the changes:

**Contributions to 401(k) and 403(b) Plans.** Taxpayers will be able to contribute up to $23,000 in 2024, up from $22,500 in 2023. The catch-up contribution amount for those age 50 and older will remain $7,500.

**IRAs.** The limit on annual contributions to traditional and Roth IRAs will increase to $7,000 in 2024, up from $6,500 in 2023. The extra catch-up contribution for those age 50 and older will remain $1,000.

**Phase-out amounts for traditional IRAs. **The deduction for taxpayers making contributions to a traditional IRA will phase out in 2024 for singles who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $77,000 and $87,000, up from $73,000 and $83,000 in 2023.

For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the 2024 income phase-out range will be $123,000 to $143,000, up from $116,000 to $136,000 in 2023.

For an IRA contributor who isn't covered by a workplace retirement plan and is married to someone who is covered, the deduction will phase out in 2024 if the couple's income is between $230,000 and $240,000, up from $218,000 and $228,000 in 2023. For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range isn't subject to an annual cost-of-living adjustment and remains $0 to $10,000.

**Phase-out amounts for Roth IRAs.** The 2024 AGI phase-out range for married couples filing jointly and making contributions to a Roth IRA will be $230,000 to $240,000, up from $218,000 to $228,000 in 2023.

For single taxpayers, the 2024 income phase-out range will be $146,000 to $161,000, up from $138,000 to $153,000 in 2023. For a married individual filing a separate return, the phase-out range isn't subject to an annual cost-of-living adjustment and will remain $0 to $10,000.

**The 2024 AGI limit for the saver's credit** (also known as the retirement savings contribution credit) for low and moderate-income workers will be $76,500 for married couples filing jointly, up from $73,000 in 2023. For heads of household, it will be $57,375, up from $54,750; and for married individuals filing separately and for singles, it will be $38,250, up from $36,500.

Here are some other 2024 retirement plan amounts, as compared with 2023:

| **Qualified Plan Limits** | **2024** | **2023** |
| --- | --- | --- |
| Defined Contribution Plan Dollar limit on additions on Sections 415(c)(1)(A) | $69,000 | $66,000 |
| The limitation on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) | $275,000 | $265,000 |
| Annual compensation limit under Sections 401(a)(17), 404(l), 408(k)(3)(C) and 408(k)(6)(D)(ii) | $345,000 | $330,000 |
| SIMPLE deferrals under Section 408(p)(2)(E) | $16,000 | $15,500 |
| SIMPLE catch-up contributions for those age 50 and older | $3,500 | $3,500 |
| Compensation defining highly compensated employee under Section 414(q)(1)(B) | $155,000 | $150,000 |
| Compensation defining key employee in a top-heavy plan under Section 416(i)(1)(A)(i) | $220,000 | $215,000 |
| Compensation triggering Simplified Employee Pension contribution requirement under Section 408(k)(2)(C) | $750 | $750 |

If you have questions about these or other tax issues, [contact your tax advisor](https://www.portebrown.com/contact-us).

[View full post](https://blog.portebrown.com/the-irs-has-announced-increased-retirement-plan-benefits-for-2024)

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