The IRS has released the new contribution limits for retirement accounts beginning in 2024. Inflation was at a 40-year high in 2023, leading to some of the largest contribution limit increases ever. Contribution limits were bumped up again in 2024, making for a great opportunity to save more for retirement while also lowering your tax bill. 

This is also a year-end reminder to check your year-to-date contributions as a way of making sure you’re maxing out accounts for 2023. We’ve summarized below the 2023 and 2024 limits for the most commonly funded accounts.

Traditional IRA/Roth IRA 

IRAs received an increase to the base contribution amount; however, there was no increase to the age 50+ catch-up contribution limit.

2023: $6,500 | Age 50+ Catch-up: $1,000

2024: $7,000 | Age 50+ Catch-up: $1,000

Health Savings Account (HSA)

single

2023: $3,850 | Age 55+: $1,000

2024: $4,150 | Age 55+: $1,000

family

2023: $7,750 | Age 55+: $1,000

2024: $8,300 | Age 55+: $1,000

401(k) limits for Microsoft, Google, & Meta (Facebook)

If you work for one of the following large tech companies, take note below to see increases to your employer match & the ability to contribute on an after-tax basis.

2023

Pre-tax/Roth: $22,500

50% Employer Match: $11,250

After-Tax: $32,250

Total: $66,000

2024

Pre-tax/Roth: $23,000

50% Employer Match: $11,500

After-Tax: $34,500

Total: $69,000

Age 50+ Catch-up

2023: $7,500

2024: $7,500 (did not change)

*The age 50+ catch-up is above and beyond the total $61k in 2022 and $66k in 2023.

**Catch-up contributions are added to the pre-tax/Roth bucket, not the after-tax bucket.
***Employer match does not apply to age 50+ catch-up contributions.

Contributing to the Amazon 401(k) plan

Calculating the contribution for your Amazon 401(k) is slightly different as Amazon contributes 50% of every 1% of your salary that you contribute, up to a cap of 4%. That works out to a 2% match so long as you contribute 4% of your salary. The amount that you can contribute to the after-tax portion of your 401(k) will vary from employee to employee as your salary varies. You simply want to calculate your after-tax limit by multiplying your salary by 2% and then subtracting it from $46,000 in 2024.

*Take note that the annual compensation limit for 2024 is $345k (up from $330k in 2023). Amazon’s match is based on this, so if you make the new base cap of $350k your 2% match is on the first $345k of salary.

2023

Pre-tax/Roth: $22,500

2% Match: 2% of Salary

After-Tax: ($43.5k – 2% of salary)

Total: $66,000

2024

Pre-tax/Roth: $23,000

50% Employer Match: 2% of your Salary

After-Tax: ($46k – 2% of salary)

Total: $69,000

Age 50+ Catch-up

2023: $7,500

2024: $7,500

*The age 50+ catch is above and beyond the total $66k in 2023and $69k in 2024.
**Catch-up contributions are added to the pre-tax/Roth bucket, not the after-tax bucket.

***Employer match does not apply to age 50+ catch-up contributions.

DISCLOSURES: 

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.

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