IRS just came out with the retirement plan contribution limits for 2024. You should take a look at these as you put together your budget for next year.
| 2024 Maximum Contribution | |
| Traditional and Roth IRAs | |
| IRA | $7,000 |
| IRA Catch‐Up | $1,000 |
| Simplified Employee Pension Plan | |
| SEP | $69,000 |
| SEP Catch-Up | N/A |
| SIMPLE Plans | |
| SIMPLE Employee | $16,000 |
| SIMPLE Catch‐Up | $3,500 |
| 401(k), 403(b), 457, Profit Sharing Plans, etc. | |
| Employee | $23,000 |
| Catch‐up | $7,500 |
| Employee + Employer Contribution Limits | $69,000 |
Catch-Up allows you to contribute the additional amount, shown above, if you turn age 50 at any time in 2024.
Also, the social security tax that is withheld from your pay, which is 6.2%, is capped at earnings of $168,600 for 2024. This means that once you make this amount in gross earnings, this tax is no longer taken out of your pay for the rest of the year.
Please comment or send an email if you have any questions.
Joe Baker, CFP®
Baker Asset Management, LLC
joebaker@bakerassetmanagement.com
