August 2023

Likely Changes in 2024 IRA Limits

Around October 15, 2023, the IRS will announce the 2024 IRA limits.

The rate of inflation for the fiscal year ending September 30, 2023, will be substantially larger (estimate of 6.0%) than it has been in many of the preceding years.

Consequently, various IRA limits will be increasing more than has been the case in many of the prior years. These likely changes for 2024 IRA limits are set forth.

These are only estimates and they may change, but there is no doubt that many of the IRA limits will be increasing. The $7,000 increase in the maximum IRA contribution limit should lead to increased IRA contributions.

The IRA contribution limit (traditional and Roth) for 2024 increases to $7,000. So, the maximum contribution limit will be $7,000 for an individual under age 50 and $8,000 for an individual age 50 or older.

The income limits applying to making a deductible contribution are also increasing as are the Roth IRA eligibility limits. More individuals who are active participants will be eligible to claim a tax deduction for their traditional IRA contribution and more individuals will be eligible to make a Roth IRA contribution.

The limits for SEP-IRAs, and SIMPLE-IRAs plans are also increasing. The maximum SEP-IRA contribution limit will be $68,000 up from $66,000. The deferral limits for SIMPLE-IRAs will be $16,000 (under age 50) and $19,500 (age 50 or older).
IRA Contribution limits for a person who is not age 50 or older.

IRA Contribution Limits for a person who is age 50 or older.

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