Retirement

New Contribution and Gifting Limits for 2024

February 14, 2024
The new retirement contribution and gift exemption limits for 2024 allow you to direct more funds into tax-advantaged accounts and possibly reduce estate taxes.

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.

Tax-advantaged savings accounts
  • Type 
  • 2023 limit 
  • 2024 limit 
  • Change
  • Type 
    401(k), 403(b), 457(b), and their Roth equivalents
  • 2023 limit 
    $22,500 
  • 2024 limit 
    $23,000 
  • Change
    +$500 
  • Type 
    Catch-up contribution (ages 50+) 
  • 2023 limit 
    $7,500
  • 2024 limit 
    $7,500
  • Change
    No change
  • Type 
    Traditional and Roth IRAs
  • 2023 limit 
    $6,500
  • 2024 limit 
    $7,000
  • Change
    +$500
  • Type 
    Catch-up contribution (ages 50+)
  • 2023 limit 
    $1,000
  • 2024 limit 
    $1,000
  • Change
    No change
  • Type 
    Health savings account
  • 2023 limit 
    Individual: $3,850
    Family: $7,750
  • 2024 limit 
    Individual: $4,150
    Family: $8,300
  • Change
    Individual: +$300
    Family: +$550
  • Type 
    Catch-up contribution (ages 55+)
  • 2023 limit 
    $1,000
  • 2024 limit 
    $1,000
  • Change
    No change 
  • Type 
    SEP-IRA* and overall defined contribution plan limit†
  • 2023 limit 
    $66,000
  • 2024 limit 
    $69,000
  • Change
    +$3,000
  • Type 
    SIMPLE IRA and SIMPLE 401(k)
  • 2023 limit 
    $15,500
  • 2024 limit 
    $16,000
  • Change
    +$500

irs.gov

*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.

Gift and estate taxes
  • Type
  • 2023 limit
  • 2024 limit
  • Change
  • Type
    Annual gift tax exclusion (per recipient)
  • 2023 limit
    Individual: $17,000
    Family: $34,000 
  • 2024 limit
    Individual: $18,000
    Family: $36,000 
  • Change
    Individual: +$1,000
    Family: +$2,000 
  • Type
    Lifetime gift and estate tax exemption
  • 2023 limit
    Individual: $12.92 million
    Family: $25.84 million
  • 2024 limit
    Individual: $13.61 million
    Family: $27.22 million 
  • Change
    Individual: +$690,000
    Family: +$1,380,000 

irs.gov

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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.

The Schwab Center for Financial Research is a division of Charles Schwab & Co., Inc.

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