Secure Act 2.0: Contribution Limit Changes

February 2, 2024 | , ,

Signed into law in December 2022, Secure Act 2.0 set in motion sweeping retirement plan reform last year. Keeping in mind those changes, we would like to highlight changes to the contribution limits that will take effect in 2024:

  • The individual contribution limit for 401(k) and 403(b) plans increased from $22,500 to $23,000. The total contribution limit increased from $66,000 to $69,000.
    • The catch-up contribution for individuals over the age of 50 remains $7,500.
  • The limit on annual contributions to Traditional and Roth IRAs increased from $6,500 to $7,000.
    • The catch-up contribution for individuals over the age of 50 remains $1,000.
  • The amount individuals can contribute to their SIMPLE retirement accounts increased from $15,500 to $16,000.
    • The catch-up contribution for individuals over the age of 50 remains $3,500.
  • The amount individuals can contribute to their SEP IRA retirement accounts increased from $66,500 to $69,000.
  • The maximum contribution to a Health Savings Account (HSA) is $4,150 for individuals and $8,300 for families, up from $3,850 and $7,775 respectively. 
  • The income ranges used to determine eligibility to make deductible contributions to Traditional and Roth IRAs increased. 
    • For individuals who are covered by a workplace retirement plan (e.g. 401k), the max adjusted gross income to make deductible contributions to an IRA is increased to $87,000 for single filers and $143,000 for married individuals filing jointly. 
    • If you are not covered by a workplace retirement plan but are married to someone who is covered, the max adjusted gross income allowed to make deductible contributions is $240,000. 
    • There is no adjusted gross income limit for individuals not covered by a retirement plan at work regardless of if they file single or jointly.
    • The max adjusted gross income to contribute directly to a Roth IRA increased to $161,000 for single filers and $240,000 for married couples filing jointly.

Would you like to learn more about Secure Act 2.0? Call us and watch our We’re Talking Money episode: New SECURE Act: What You Need to Know NOW.

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