401(k) and IRA limits increase for 2024

Individuals will soon be able to contribute more to their retirement savings accounts, according to the Internal Revenue Service (IRS). The contribution maximum for eligible workers who participate in 401(k), 403(b), and most 457 plans, as well as the federal government's Thrift Savings Plan, will rise by $500 to $23,000 in 2024, from $22,500 in 2023.

What’s more, the yearly contribution limit to the Individual Retirement Arrangements (IRA) will rise to $7,000 in 2024, up from $6,500 in 2023. The contribution limit applies to both regular and Roth IRA contributions.

How can you get ready for the coming year? Collaborate with your payroll department or provider to ensure the new limits are taken into consideration. Communicate with employees about the increased limits and remind them how they can make changes to their contributions. 

For more information on retirement-related adjustments and how you can best prepare for 2024, speak to one of our HR consultants.