With inflation seemingly on the decline, the IRS' changes to contribution and gift limits for 2024 are not as substantial as they were in 2023. "However, even small increases mean you can save more tax-advantaged money," says Hayden Adams, CPA, CFP®, director of tax and wealth management at the Schwab Center for Financial Research. Here's a look at the changes for 2024.
- Type
- 2023 limit
- 2024 limit
- Change
-
Type401(k), 403(b), 457(b), and their Roth equivalents
-
2023 limit$22,500
-
2024 limit$23,000
-
Change+$500
-
TypeCatch-up contribution (ages 50+)
-
2023 limit$7,500
-
2024 limit$7,500
-
ChangeNo change
-
TypeTraditional and Roth IRAs
-
2023 limit$6,500
-
2024 limit$7,000
-
Change+$500
-
TypeCatch-up contribution (ages 50+)
-
2023 limit$1,000
-
2024 limit$1,000
-
ChangeNo change
-
TypeHealth savings account
-
2023 limitIndividual: $3,850Family: $7,750
-
2024 limitIndividual: $4,150Family: $8,300
-
ChangeIndividual: +$300Family: +$550
-
TypeCatch-up contribution (ages 55+)
-
2023 limit$1,000
-
2024 limit$1,000
-
ChangeNo change
-
TypeSEP-IRA* and overall defined contribution plan limit†
-
2023 limit$66,000
-
2024 limit$69,000
-
Change+$3,000
-
TypeSIMPLE IRA and SIMPLE 401(k)
-
2023 limit$15,500
-
2024 limit$16,000
-
Change+$500
*SEP-IRA contributions are limited to the lesser of 25% of the employee's compensation or the $69,000 annual limit. The limit for owners is the lesser of 20% of net income or the annual limit.
†Includes 401(k) and 403(b) plans. Does not include 457(b) plans.
- Type
- 2023 limit
- 2024 limit
- Change
-
TypeAnnual gift tax exclusion (per recipient)
-
2023 limitIndividual: $17,000Family: $34,000
-
2024 limitIndividual: $18,000Family: $36,000
-
ChangeIndividual: +$1,000Family: +$2,000
-
TypeLifetime gift and estate tax exemption
-
2023 limitIndividual: $12.92 millionFamily: $25.84 million
-
2024 limitIndividual: $13.61 millionFamily: $27.22 million
-
ChangeIndividual: +$690,000Family: +$1,380,000
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The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.
All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.
Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.
Investing involves risk, including loss of principal.
The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, individualized tax, legal, or investment advice. Tax laws are subject to change, either prospectively or retroactively. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information.
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