What the 2024 IRS contribution limits are

The IRS sets annual limits on how much money you can put into retirement accounts and certain savings accounts each year. These limits change most years, and 2024 has different caps than 2023. The limit that applies to you depends on which type of account you use — a 401(k), traditional IRA, Roth IRA, or Health Savings Account (HSA) each has its own ceiling.

The IRS raises these limits to account for inflation. If you exceed the limit for your account type, you may owe taxes on the overage and face penalties, so knowing your account's specific cap matters before you contribute.

Key Takeaways

  • The 2024 limit for 401(k) and 403(b) plans is $23,500, or $31,000 if you are age 50 or older and make a catch-up contribution.
  • Traditional and Roth IRA limits are $7,000 each in 2024, or $8,000 if you are age 50 or older.
  • Health Savings Account limits are $4,150 for individual coverage and $8,300 for family coverage in 2024.
  • Limits reset on January 1 each year, and the IRS announces 2025 limits in October of the prior year.
  • Exceeding your account's limit can result in taxes owed on the excess and a 6 percent excise tax per year the overage remains.

401(k) and 403(b) contribution limits

If your employer offers a 401(k) or 403(b) plan, you can contribute up to $23,500 in 2024. This is the amount you defer from your paycheck before taxes are taken out. If you are age 50 or older, you can make an additional catch-up contribution of $7,500, bringing your total to $31,000.

Your employer may also contribute to your account — that contribution does not count toward your $23,500 limit. However, the combined total of your deferrals plus your employer's contribution cannot exceed $69,000 in 2024 (or $76,500 if you are 50 or older and make catch-up contributions).

If you have access to both a 401(k) and a 403(b) through different employers, your $23,500 limit applies across both accounts combined — you cannot contribute $23,500 to each one.

Traditional and Roth IRA contribution limits

You can contribute $7,000 to a traditional IRA or Roth IRA in 2024. If you are age 50 or older, you can contribute an additional $1,000 catch-up contribution, for a total of $8,000. This limit applies to the combined total of all traditional and Roth IRAs you own — if you have two Roth IRAs, you cannot put $7,000 in each one.

The type of IRA you use affects your taxes. With a traditional IRA, you may deduct your contribution from your taxable income in the year you make it. With a Roth IRA, you contribute after-tax dollars, but withdrawals in retirement are tax-free. Your income level may limit whether you can deduct a traditional IRA contribution or contribute to a Roth IRA at all.

Unlike a 401(k), you can continue to contribute to an IRA after age 70½, as long as you have earned income from work.

Health Savings Account limits

If you have a high-deductible health plan, you may be able to open a Health Savings Account (HSA). The 2024 contribution limit is $4,150 if you have individual coverage, or $8,300 if you have family coverage. If you are age 55 or older, you can contribute an additional $1,000 catch-up contribution.

HSA contributions reduce your taxable income, and money you withdraw for may have access to medical expenses is not taxed. Unlike a 401(k) or IRA, HSA funds roll over year to year — you do not lose unused money at the end of the year. After age 65, you can withdraw HSA funds for any reason without penalty, though non-medical withdrawals are taxed as income.

What happens if you contribute too much

If you put more money into an account than the IRS limit allows, the excess is called an excess contribution. You will owe income tax on the excess amount, and you may also owe a 6 percent excise tax on the overage for each year it remains in the account. The excise tax applies every year until you remove the excess.

If you discover an overage before you file your tax return for that year, you can request a return of the excess contribution from your plan administrator or financial institution. If you catch it after filing, you may need to file an amended return. Some plans allow you to carry forward an overage to the next year if you did not reach the limit that year, but this varies by plan type.

How limits change year to year

The IRS adjusts contribution limits annually based on inflation. The 2024 limits increased from 2023 — for example, the 401(k) limit rose from $22,500 to $23,500. The IRS typically announces the next year's limits in October, so 2025 limits were announced in October 2024.

You can find the current year's limits on the IRS website under "Retirement Topics" or by calling the IRS at 1-800-829-1040. Your employer's benefits office or your financial institution can also tell you the limit for your specific account type.

Frequently Asked Questions

Can I contribute to both a 401(k) and an IRA in the same year?

Yes. The $23,500 401(k) limit and the $7,000 IRA limit are separate, so you can contribute the maximum to both in 2024. However, your ability to deduct a traditional IRA contribution may be limited if you have a 401(k) at work and your income is above a certain threshold.

What if I change jobs mid-year?

Your 401(k) limit applies across all 401(k) plans you participate in during the year combined. If you contributed $12,000 to your old employer's plan and then $15,000 to your new employer's plan, you have contributed $27,000 total — which exceeds the $23,500 limit. You would need to request a return of the excess from one of the plans.

Do employer contributions count toward my limit?

Your employer's contributions to your 401(k) do not count toward your $23,500 employee deferral limit, but they do count toward the combined employer-plus-employee limit of $69,000. Your contributions and your employer's contributions combined cannot exceed that higher ceiling.

Can I contribute to an HSA and a 401(k) at the same time?

Yes. HSA and 401(k) limits are separate, so you can contribute to both in the same year. An HSA is often used as a long-term savings tool because of its tax advantages, making it a complement to a 401(k).

What if I turn 50 during the year?

You can make catch-up contributions for the entire year once you reach age 50, even if it is December 31. Your plan administrator can adjust your payroll deduction to allow the higher contribution for the remainder of the year.