The IRS has released cost-of-living adjustments affecting pension plans and other retirement-related items for tax year 2024. Some of the limits applicable to pension and other retirement plans have increased.
For instance, the elective deferral limit for employees participating in 401(k), 403(b), and most 457 plans increased from $22,500 to $23,000 and the limit on annual contributions to a SIMPLE plan has increased from $15,500 to $16,000. The catch-up contribution limit for employees aged 50 and over participating in 401(k), 403(b), and most 457 plans remains at $7,500.
The limit on annual contributions to an IRA increased from $6,500 to $7,000, while the $1,000 IRA catch-up contribution for individuals aged 50 or over remains unchanged. The income ranges for determining eligibility to make deductible contributions to traditional IRAs, to contribute to Roth IRAs, and to claim the saver’s credit all increased for 2024.
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As always, our team of tax professionals at theKFORDgroup is here to assist you with any concerns or questions you may have. We value your trust and look forward to continuing to provide you with exceptional services.
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