2023 2024 401k 403b 457 IRA FSA HSA Contribution Limits

[Updated on June 13, 2023.]

Retirement account contribution limits are adjusted for inflation each year. Inflation has moderated in recent months. Some contribution limits and income limits will go up in 2024.

Before the IRS publishes the official adjustments in late October or early November, I’m able to calculate them using the published inflation numbers and going by the same rules the IRS uses as stipulated by law. I’ve maintained a record of 100% accuracy ever since I started doing these calculations.

I offer preliminary projections before all the inflation data are available. These preliminary projections will become more accurate as we have more data.

Table of Contents2023 2024 401k/403b/457/TSP Elective Deferral Limit2023 2024 Annual Additions Limit2023 2024 SEP-IRA Contribution Limit2023 2024 Annual Compensation Limit2023 2024 Highly Compensated Employee Threshold2023 2024 SIMPLE 401k and SIMPLE IRA Contribution Limit2023 2024 Traditional and Roth IRA Contribution Limit2023 2024 Deductible IRA Income Limit2023 2024 Roth IRA Income Limit2023 2024 Healthcare FSA Contribution Limit2023 2024 HSA Contribution Limit2023 2024 Saver’s Credit Income LimitAll Together2023 Tax Brackets and Standard Deduction2023 2024 401k/403b/457/TSP Elective Deferral Limit

The 401k/403b/457/TSP contribution limit is $22,500 in 2023. It will likely go up by $500 to $23,000 in 2024.

If you are age 50 or over by December 31, the catch-up contribution limit is $7,500 in 2023. It will likely stay the same at $7,500 in 2024.

Employer match or profit-sharing contributions aren’t included in these limits. If you work for multiple employers in the same year or if your employer offers multiple plans, you have one single employee contribution limit for 401k, 403b, and the federal government’s Thrift Savings Plan (TSP) across all plans.

The 457 plan limit is separate from the 401k/403b/TSP limit. You can contribute the maximum to both a 401k/403b/TSP plan and a 457 plan.

2023 2024 Annual Additions Limit

The total contributions from both the employer and the employee to all defined contribution plans by the same employer is $66,000 in 2023. It will likely increase to $68,000 in 2024. If we get high inflation in the upcoming months, it might go up to $69,000 in 2024.

The age-50-or-over catch-up contribution is separate from this limit. If you work for multiple employers in the same year, you have a separate annual additions limit for each unrelated employer.

2023 2024 SEP-IRA Contribution Limit

The SEP-IRA contribution limit is always the same as the annual additions limit for a 401k plan. It is $66,000 in 2023, and it will likely increase to $68,000 or $69,000 in 2024.

Because the SEP-IRA doesn’t allow employee contributions, unless your self-employment income is well above $200,000, you have a higher contribution limit if you use a solo 401k. See Solo 401k When You Have Self-Employment Income.

2023 2024 Annual Compensation Limit

The maximum annual compensation that can be considered for making contributions to a retirement plan is always 5x the annual additions limit. Therefore the annual compensation limit is $330,000 in 2023. It will likely increase to $340,000 or $345,000 in 2024.

2023 2024 Highly Compensated Employee Threshold

If your employer limits your contribution because you’re a Highly Compensated Employee (HCE), the minimum compensation to be counted as an HCE is $150,000 in 2023. It will likely go up to $155,000 in 2024.

2023 2024 SIMPLE 401k and SIMPLE IRA Contribution Limit

Some smaller employers offer a SIMPLE 401K or a SIMPLE IRA plan instead of a regular 401k plan. SIMPLE 401k and SIMPLE IRA plans have a lower contribution limit than standard 401k plans. The contribution limit for SIMPLE 401k and SIMPLE IRA plans is $15,500 in 2023. It will likely go up to $16,000 in 2024.

If you are age 50 or over by December 31, the catch-up contribution limit in a SIMPLE 401k or SIMPLE IRA plan is $3,500 in 2023. It will stay the same at $3,500 in 2024.

Employer contributions to a SIMPLE 401k or SIMPLE IRA plan aren’t included in these limits.

2023 2024 Traditional and Roth IRA Contribution Limit

The Traditional IRA or Roth IRA contribution limit is $6,500 in 2023. It will likely go up to $7,000 in 2024.

If you are age 50 or over by December 31, the catch-up limit is $1,000 in 2023. It will stay the same at $1,000 in 2024.

The IRA contribution limit is shared between Traditional IRA and Roth IRA. If you contribute the maximum to a Roth IRA, you aren’t eligible to contribute to a Traditional IRA, and vice-versa.

The IRA contribution limit and the 401k/403b/TSP or SIMPLE contribution limit are separate. You can contribute the respective maximum to both a 401k/403b/TSP/SIMPLE plan and a Traditional IRA or Roth IRA.

2023 2024 Deductible IRA Income Limit

The income limit for taking a full deduction for your contribution to a Traditional IRA while participating in a workplace retirement plan in 2023 is $73,000 for single filers and $116,000 for a married couple filing jointly. The deduction completely phases out when your income goes above $83,000 in 2023 for singles and $136,000 for married filing jointly.

The full-deduction limits will likely go up in 2024 to $77,000 for single filers and $123,000 for a married couple filing jointly. The deduction will completely phase out when your income goes above $87,000 in 2024 for singles; and $143,000 for married filing jointly.

When you’re not covered in a workplace retirement plan but your spouse is, the income limit for taking a full deduction for your contribution to a Traditional IRA is $218,000 in 2023. The deduction completely phases out when your joint income goes above $228,000 in 2023.

The full-deduction limit will likely go up to $231,000 in 2024. The deduction completely phases out when your joint income goes above $241,000 in 2024.

2023 2024 Roth IRA Income Limit

The income limit for contributing the maximum to a Roth IRA depends on your filing status. It is $138,000 for singles and $218,000 for married filing jointly in 2023. These limits will go up to $146,000 for singles and $231,000 for married filing jointly in 2024.

You can’t contribute anything directly to a Roth IRA when your income goes above $153,000 in 2023 for singles and $228,000 in 2023 for married filing jointly. These limits will go up to $161,000 for singles and $241,000 for married filing jointly in 2024.

Your contribution eligibility is prorated in the income phase-out range.

2023 2024 Healthcare FSA Contribution Limit

The Healthcare FSA contribution limit is $3,050 per person in 2023. It will go up to $3,200 or $3,250 in 2024.

Some employers allow carrying over some unused amount to the following year. The maximum amount that can be carried over to the following year is set to 20% of the contribution limit in the current tax year. As a result, the carryover limit is $610 per person in 2023. It will go up to $640 or $650 in 2024.

2023 2024 HSA Contribution Limit

The HSA contribution limit for single coverage is $3,850 in 2023. The HSA contribution limit for family coverage is $7,750 in 2023. These limits will go up to $4,150 for single coverage and $8,300 for family coverage in 2024. The new limits were announced previously in the spring. Please see HSA Contribution Limits.

Those who are 55 or older by December 31 can contribute an additional $1,000. If you are married and both of you are 55 or older by December 31, each of you can contribute the additional $1,000 but they must go into separate HSAs in each person’s name.

You don’t need earned income to contribute to an HSA.

2023 2024 Saver’s Credit Income Limit

The income limits for receiving a Retirement Savings Contributions Credit (“Saver’s Credit”) in 2023 for married filing jointly are $43,500 (50% credit), $47,500 (20% credit), and $73,000 (10% credit). These limits in 2024 will likely be $46,000 (50% credit), $50,000 (20% credit), and $77,000 (10% credit).

The limits for singles are half of the limits for married filing jointly. The 2023 limits are $21,750 (50% credit), $23,750 (20% credit), and $36,500 (10% credit). The 2024 limits will likely be $23,000 (50% credit), $25,000 (20% credit), and $38,500 (10% credit)

All Together20232024 (Preliminary)IncreaseLimit on employee contributions to 401k, 403b, or 457 plan$22,500$23,000$500Limit on age 50+ catch-up contributions to 401k, 403b, or 457 plan$7,500$7,500NoneSIMPLE 401k or SIMPLE IRA contributions limit$15,500$16,000$500SIMPLE 401k or SIMPLE IRA age 50+ catch-up contributions limit$3,500$3,500NoneMaximum annual additions to all defined contribution plans by the same employer$66,000$68,000 or $69,000$2,000 or $3,000SEP-IRA contribution limit$66,000$68,000 or $69,000$2,000 or $3,000Highly Compensated Employee definition$150,000$155,000$5,000Annual Compensation Limit$330,000$340,000 or $345,000$10,000 or $15,000Traditional and Roth IRA contribution limit$6,500$7,000$500Traditional and Roth IRA age 50+ catch-up contribution limit$1,000$1,000NoneDeductible IRA income limit, single, active participant in workplace retirement plan$73,000 – $83,000$77,000 – $87,000$4,000Deductible IRA income limit, married, active participant in workplace retirement plan$116,000 – $136,000$123,000 – $143,000$7,000Deductible IRA income limit, married, spouse is active participant in workplace retirement plan$218,000 – $228,000$231,000 – $241,000$13,000Roth IRA income limit, single$138,000 – $153,000$146,000 – $161,000$8,000Roth IRA income limit, married filing jointly$218,000 – $228,000$231,000 – $241,000$13,000Healthcare FSA Contribution Limit$3,050$3,200 or $3,250$150 or $200HSA Contribution Limit, single coverage$3,850$4,150$300HSA Contribution Limit, family coverage$7,750$8,300$550HSA, age 55 catch-up$1,000$1,000NoneSaver’s Credit income limit, married filing jointly$43,500 (50%)
$47,500 (20%)
$73,000 (10%)$46,000 (50%)
$50,000 (20%)
$77,000 (10%)$2,500 (50%)
$2,500 (20%)
$4,000 (10%)Saver’s Credit income limit, single$21,750 (50%)
$23,750 (20%)
$36,500 (10%)$23,000 (50%)
$25,000 (20%)
$38,500 (10%)$1,250 (50%)
$1,250 (20%)
$2,500 (10%)

Source: IRS Notice 2022-55, author’s calculation.

2023 Tax Brackets and Standard Deduction

I also have the 2023 income tax brackets, standard deduction, capital gains, and gift tax exclusion limit. Please read 2023 Tax Brackets, Standard Deduction, Capital Gains, etc.

Learn the Nuts and Bolts I put everything I use to manage my money in a book. My Financial Toolbox guides you to a clear course of action.Read Reviews

The post 2023 2024 401k 403b 457 IRA FSA HSA Contribution Limits appeared first on The Finance Buff.