15 Changes to 401(k)s and Other Retirement Accounts Coming in 2024

Brace yourself for 15 game-changing tweaks to your retirement accounts.

A senior couple busy on a budget review in the home
Updated June 6, 2024
Fact checked

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

With 2024 already underway, some substantial changes to retirement plans are in effect. These modifications could significantly impact your financial strategies.

Maybe you were considering retiring early, but the new options for saving more might make you reconsider.

Here's a breakdown of 15 key alterations that went into effect this year, including increased contribution limits and adjustments to income phase-out ranges.

Eliminate your late tax debt

Each year, the IRS forgives millions in unpaid taxes. If you have more than $10,000 in tax debt, or have 3+ years of unfiled taxes, you could get forgiveness too. You might be eligible to lower the amount you owe, or eliminate your tax debt completely.

Easy Tax Relief could help you lower or get out of your tax debt for good. They’re well respected in the industry and have been recognized for their ethical standards when dealing with tax debt. While most tax companies just put you on a payment plan and file your taxes for you, Easy Tax Relief talks to the IRS directly. They can help you pay off your tax debt faster while potentially reducing what you owe.

Important: Not everyone will qualify. To take advantage of this special program you must owe more than $10,000 in past-due taxes.

Fill out this form to get started

Retirement plan limits are up

Monkey Business/Adobe mature couple signing paperwork

The contribution limits for 401(k), 403(b), 457 plans, and the federal government's Thrift Savings Plan are set this year at $23,000, up from $22,500 in 2023.

This opens new avenues for individuals to engage in tax-advantaged retirement savings and reinforces the capacity to build wealth for the future.

This increase in limits not only allows for expanded contributions but serves as an opportunity to maximize tax-advantaged savings.

Increased limit on annual IRA contributions

peopleimages.com/Adobe writing life insurance information

This year, the limit on annual contributions to an IRA stepped up to $7,000 from the previous $6,500, accompanied by an additional catch-up contribution limit of $1,000 for individuals 50 and older.

This increase presents a golden opportunity for older individuals to fortify their IRA savings, providing an added layer of security to their retirement nest egg.

Catch-up contribution limits for 401(k) and similar plans

Charlize D/peopleimages.com/Adobe interracial couple planning

If you're 50 and older and participating in 401(k), 403(b), and most 457 plans, here's some news: The catch-up contribution limit remains at $7,500 for 2024.

This allows you to contribute up to $30,500. At the same time, the catch-up contribution limit for employees 50 and older who participate in SIMPLE plans remains $3,500 for 2024.

Earn $200 cash rewards bonus with this incredible card

There's a credit card that's making waves with its amazing bonus and benefits. The Wells Fargo Active Cash® Card(Rates and fees) has no annual fee and you can earn $200 after spending $500 in purchases in the first 3 months.

The Active Cash Card puts cash back into your wallet. Cardholders can earn unlimited 2% cash rewards on purchases — easy! That's one of the best cash rewards options available.

This card also offers an intro APR of 0% for 15 months from account opening on purchases and qualifying balance transfers (then 20.24%, 25.24%, or 29.99% Variable). Which is great for someone who wants a break from high interest rates, while still earning rewards.

The best part? There's no annual fee.

Click here to apply now.

Phase-out range adjustments for workplace retirement plan contributions

Andrii/Adobe financial data review

The phase-out range for singles with workplace retirement plans increased to between $77,000 and $87,000, up from between $73,000 and $83,000. 

That means more people might now qualify for tax-saving opportunities, turning your higher income into potential tax advantages.

Individuals in higher income brackets can still enjoy the benefits of tax advantages, but this adjustment means that even more people might now be eligible for these tax-saving opportunities.

Phase-out range changes for IRA contributions

Daisy Daisy/Adobe mature couple at home

For married couples filing jointly, if the contributing spouse is covered by a workplace retirement plan, the phase-out range now stands between $123,000 and $143,000, up from the previous $116,000 to $136,000.

Couples can now optimize their tax strategies by contributing to IRAs, taking advantage of the updated phase-out range, and making the most of potential tax benefits.

IRA contributions for non-covered spouses

Monkey Business/Adobe worried senior couple sitting on sofa

For an IRA contributor married to someone covered by a workplace retirement plan, the phase-out range is now $230,000 to $240,000, an increase from the previous range of $218,000 to $228,000. 

Couples can continue diversifying their retirement savings, making the most of potential tax benefits within the adjusted phase-out range.

Changes for married individuals filing separately

brizmaker/Adobe senior man reviewing taxes using laptop

The phase-out range for a married individual filing a separate return covered by a workplace retirement plan remains between $0 and $10,000 and is not subject to an annual cost of living adjustment.

This range allows for some contribution benefits for married individuals filing separately, catering to unique financial situations.

Increased income phase-out range for Roth IRA contributions

Arthur/Adobe reviewing a pension booklet

The income phase-out range for individual taxpayers making contributions to a Roth IRA is now between $146,000 and $161,000 for singles and heads of household, up from the previous $138,000 to $153,000.

The expanded income range enables more individuals to contribute to Roth IRAs, offering tax-free growth potential in retirement.

Changes in income phase-out range for married couples

Monkey Business/Adobe senior couple sitting around table

For married couples filing jointly, the income phase-out range for Roth IRA contributions is increased to between $230,000 and $240,000, up from the previous $218,000 to $228,000.

Also, the phase-out range for a married individual filing a separate return who contributes to a Roth IRA is not subject to an annual cost-of-living adjustment and remains between $0 and $10,000.

Take advantage of historically high rates to grow your wealth

Are your savings just sitting around, not earning much interest? It's time to make a change and put your money to work for you! With CloudBank 24/7, you can earn more interest on your money today ... while keeping your cash OUT of the stock market.

Here’s their secret: CloudBank 24/7 amplifies your money by doing what many banks refuse to do … paying you a rare 5.22% APY (annual percentage yield)12 on your cash.

When you deposit your money into this high-yield savings account, you can supercharge your emergency fund, short-term savings, return on cash, and more with interest income generated from their high 5.22% APY payout.

The best part? There are no fees, you can withdraw your money at any time, and opening an account takes as little as 3 minutes. CloudBank 24/7 is FDIC-insured through Third Coast Bank SSB and cybersecurity is a top priority, ensuring your data is kept safe.

Limited Time Bonus: Earn up to $2,000 when you refer friends and family to Raisin. Visit site to learn more.

Click here to open a CloudBank 24/7 online savings account

Changes in income limit for the Saver's Credit

Vorda Berge/Adobe senior couple doing bills

Also known as the Retirement Savings Contributions Credit, the income limit for the Saver's Credit (designated for workers with low and moderate incomes) is increased to $76,500 for married couples filing jointly, up from $73,000. 

The limit is $57,375 for heads of household, up from $54,750, and $38,250 for singles and married individuals filing separately, up from $36,500.

Workers with lower and moderate incomes can now enjoy increased Saver's Credit benefits, encouraging more individuals to save for retirement.

Enhanced contribution limits for SIMPLE retirement accounts

Jelena Stanojkovic/Adobe man with paperwork

The amount individuals can contribute to their SIMPLE retirement accounts is increased to $16,000, up from the previous $15,500.

This boost in contribution limits allows individuals covered by SIMPLE plans to accelerate their savings and build a more robust retirement fund and a brighter financial future for themselves.

Qualifying longevity annuity contract limitations

Sidekick/Adobe female financial advisor

Under the Secure 2.0 Act, the limitation on premiums paid for qualifying longevity annuity contracts remains at $200,000 for 2024. 

This limitation ensures that individuals can strategically incorporate longevity annuities into their retirement plans without exceeding a specified premium amount.

Deductible limit adjustment on charitable distributions

Rene L/peopleimages.com/Adobe elderly women partners in office

The Secure 2.0 Act introduced the deductible limit on charitable distributions, which increased to $105,000 for 2024 from $100,000.

This adjustment offers individuals greater flexibility in making charitable contributions directly from their retirement accounts, potentially optimizing their tax positions and doing some good at the same time.

Deductible limit for a one-time election on IRA distributions to split-interest entities

K Abrahams/peopleimages.com/Adobe accountant with finance documents

Also, under the Secure 2.0 Act, the deductible limit for a one-time election to treat a distribution from an individual retirement account made directly by the trustee to other entities increased to $53,000 for 2024, up from $50,000.

This adjustment provides additional options for charitable giving, allowing individuals to make strategic decisions about their IRA distributions to benefit split-interest entities.

Bottom line

Vorda Berge/Adobe senior couple using a smartphone

As you navigate these new changes to retirement plans, it's crucial to assess how they align with your financial goals and retirement strategy. 

Are you capitalizing on heightened contribution limits? Have you contemplated adjustments to your income and Roth IRA contributions?

Reflecting on these modifications can help fine-tune your retirement plan. Remember, the more you save today, the better positioned you'll be to retire comfortably tomorrow.

Lucrative, Flat-Rate Cash Rewards

5.0

Wells Fargo Active Cash® Card

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks
Card Details

Author Details

Adam Palasciano

Adam Palasciano is a personal finance-obsessed and money-savvy individual who loves to hash out content on all things saving money. He specializes in writing millennial-friendly personal finance content, covering topics ranging from trending financial news, debt, credit cards, cryptocurrency, and more.