Internal Revenue Service building and sign in Washinton, DC
ComplianceTax & AccountingNovember 03, 2023

IRS announces 2024 retirement-plan related cost-of-living adjustments

By: James Hrycyna Jr.

IRA regular contribution limit will increase to $7,000

On November 1, 2023, the Internal Revenue Service issued Notice 2023-75 announcing retirement plan cost-of-living adjustments (COLAs) applicable to 2024. After an increase to the traditional and Roth individual retirement account (IRA) regular contribution limit in 2023, the limit will again increase $500 for 2024. Additionally, income thresholds that determine traditional IRA deductibility, Roth IRA eligibility, and saver’s tax credit eligibility will slightly increase. Those limits as well as simplified employee pension (SEP) limits, elective deferral limits, and Savings Incentive Match Plan for Employees of Small Employers (SIMPLE) IRA deferral limits for 2024 are as follows:

IRA Contribution Limits
Tax Year Contribution Limit Catch-Up Contribution Age 50 and Older Contribution Limit
2024 $7,000 $1,000 $8,000
Traditional IRA Deductibility MAGI Thresholds*
Filing Status Tax Year Full Deduction Partial Deduction No Deduction
Single 2024 ≤ $77,000 Between $77,000 and $87,000 ≥ $87,000
Married, Joint 2024 ≤ $123,000 Between $123,000 and $143,000 ≥ $143,000
Married, Joint (not active participant but spouse is) 2024 ≤ $230,000 Between $230,000 and $240,000 ≥ $240,000
Married, Separate 2024 N/A < $10,000 ≥ $10,000
*Applies to individuals that actively participate in an employer sponsored retirement plan.
Roth IRA Eligibility MAGI Thresholds
Filing Status Tax Year Full Deduction Partial Deduction No Contribution
Single 2024 ≤ $146,000 Between $146,000 and $161,000 ≥ $161,000
Married, Joint 2024 ≤ $230,000 Between $230,000 and $240,000 ≥ $240,000
Married, Separate 2024 N/A < $10,000 ≥ $10,000
Saver’s Tax Credit MAGI Thresholds 2023
Filing Status Credit is 50% of Contribution if Income is: Credit is 20% of Contribution if Income is: Credit is 10% of Contribution if Income is: No Credit if Income is:
Married, Joint ≤ $46,000 $46,001 - $50,000 $50,001 - $76,500 > $76,500
Head of Household ≤ $34,500 $34,501 - $37,500 $37,501 - $57,375 > $57,375
All Other Filers ≤ $23,000 $23,001 - $25,000 $25,001 - $38,250 > $38,250
SEP Contribution Limits
Tax Year  
2024 The lesser of 25% of the first $345,000 of compensation or $69,000
Elective Deferral Limits
Tax Year Basic Deferral Limit Catch-Up Deferral Age 50 and Older Total Deferral Limit
2024 $23,000 $7,500 $30,500
SIMPLE Deferral Limits
Tax Year Basic Deferral Limit Catch-Up Deferral Age 50 and Older Total Deferral Limit
2024 $16,000 $3,500 $19,500

For an opportunity to learn more about IRAs and other tax-advantaged accounts including Health Savings Accounts and Coverdell Education Savings Accounts, consider the Wolters Kluwer IRA Library or on-demand video training offered on a variety of topics. Go here to learn more about training opportunities available to you, or you can call us at 1-800-552-9408.

James Hrycyna Jr.
James Hrycyna Jr.
Senior Specialized Consultant
With more than 20 years of financial services industry experience, James’ has worked with individuals to meet their financial goals and currently works with financial organizations in creating, implementing, and maintaining their tax-advantaged accounts program.
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