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
401(k), 403(b), 457(b), and their Roth equivalents$22,500 $23,000 +$500 
Catch-up contribution (ages 50+) $7,500$7,500No change
Traditional and Roth IRAs$6,500$7,000+$500
Catch-up contribution (ages 50+)$1,000$1,000No change
Health savings accountIndividual: $3,850
Family: $7,750
Individual: $4,150
Family: $8,300
Individual: +$300
Family: +$550
Catch-up contribution (ages 55+)$1,000$1,000No 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

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

Type2023 limit2024 limitChange
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 exemptionIndividual: $12.92 million
Family: $25.84 million
Individual: $13.61 million
Family: $27.22 million 
Individual: +$690,000
Family: +$1,380,000 

Source

irs.gov

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