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 |
---|---|---|---|
401(k), 403(b), 457(b), and their Roth equivalents | $22,500 | $23,000 | +$500 |
Catch-up contribution (ages 50+) | $7,500 | $7,500 | No change |
Traditional and Roth IRAs | $6,500 | $7,000 | +$500 |
Catch-up contribution (ages 50+) | $1,000 | $1,000 | No change |
Health savings account | Individual: $3,850 Family: $7,750 | Individual: $4,150 Family: $8,300 | Individual: +$300 Family: +$550 |
Catch-up contribution (ages 55+) | $1,000 | $1,000 | No change |
SEP-IRA* and overall defined contribution plan limit† | $66,000 | $69,000 | +$3,000 |
SIMPLE IRA and SIMPLE 401(k) | $15,500 | $16,000 | +$500 |
Source
*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 |
---|---|---|---|
Annual gift tax exclusion (per recipient) | Individual: $17,000 Family: $34,000 | Individual: $18,000 Family: $36,000 | Individual: +$1,000 Family: +$2,000 |
Lifetime gift and estate tax exemption | Individual: $12.92 million Family: $25.84 million | Individual: $13.61 million Family: $27.22 million | Individual: +$690,000 Family: +$1,380,000 |
Source
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