2024 contribution limits for 401(k)s, IRAs, Roth IRAs, and HSAs
The IRS has released the 2024 maximum allowable contributions for 401(k)s, IRAs, Roth IRAs, and HSAs. We cover these limits and the adjustments you need to make if you work at Amazon, Microsoft, Meta, or Google.
It's a great time of year to audit your 2023 contributions to ensure you'll max out, and also set your contributions based on these new maximums for 2024. Reach out if you have any questions!
Transcript:
In today's video, we're talking all about the 2024 contribution limits for 401ks, IRAs, and HSAs. I'm Chris Kaminski, co-founder and partner here with Consilio Wealth, where we specialize in working with technology professionals at Amazon, Microsoft, Meta, and Google. All right, the 2024 contribution limit for the 401k is $23,000 flat. That's up from $22,500 last year.
The catch-up contributions remain the same at $7,500. Catch-up contributions are eligible for anybody that is turning 50 in 2024 or is already 50 today. That also means if you're at Microsoft, Meta, or Google, your match is now $11,500, which is of course 50% of the $23,000 pre-tax or Roth contribution limit. The total contributions limit is now $69,000. That is up from $66,000. And that means...
Again, if you're at Microsoft, Meta, or Google, you can put in up to $34,500 into your after-tax 401k and then perform an in-plan Roth conversion, which moves all that money over to the Pega backdoor Roth. That's the Roth portion of your 401k. We'll link to an additional video here so that you can learn all about this. If you're at Amazon, your match is 2% of your salary. So your after-tax total is a little bit different. If you take the new total contributions limit of 69,000,
and you subtract 23,000 and then you subtract how much your match is, 2% of your salary, you'll come up with the rough math on what is allowable in your after-tax contribution to your 401k. Again, all of that is going to sum up to the $69,000 total. IRAs and Roth IRAs are increasing in 2024 to $7,000. That's a $500 increase over 2023. The catch-up contributions remain at $1,000. Once again, that is if you are turning 50 in 2024 or you are already 50.
you can do the extra $1,000 catch-up contribution, bringing your total to $8,000. It's also worth noting if your 2024 income is higher than 240,000 as a married filing jointly, or 161,000 as a single filer, you can't fund a Roth IRA directly, and you would have to instead do a backdoor Roth IRA if you so qualify. We'll also link to that video here so that you can learn more about that. Finally, HSA contributions are going up to a max of $8,300 for a family, and $4,150 for an individual.
Take note that this is a total contribution. So if your company puts in say $1,000 as a contribution to your HSA, your allowable contributions are $1,000 less than the 8,300 or the 4,150. That's it. Make sure to log in and adjust your 401k plans so that they are set to max out, assuming you max your 401k every year. You can simply take the total amounts referenced in this video and divide them into your salary. Example, a $23,000 contribution to say a pre-tax 401k.
Let's say you have a $230,000 salary, or let's say your salary is less than that and your bonus gets you to 230,000, that would be a 10% contribution, which would max it out. So just simply do that math, readjust your contributions for the coming year, and you should be set to max over 12 months. That's it, hope this was helpful.
