Making the maximum contributions to your retirement plan can increase your retirement savings and lower your taxes. But the end of the year means the 2024 401(k) contribution deadline arrived.
Here is some information to help you take advantage of tax breaks associated with your retirement savings plan — including the 2024 401(k) contribution limits (and new 401(k) contribution limits for 2025.)
What was the last day to contribute to a 401(k) for 2024?
The deadline to contribute to an employer-sponsored 401(k) plan for 2024 was Dec. 31.
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Can I contribute to a 401(k) after December 31? A common question is whether you can contribute to your retirement savings plan after Dec. 31. The answer is that because 401(k) contributions are made through payroll deductions, Dec. 31 is the deadline.
However, if you have an IRA, you can contribute to that account up until the 2024 tax year filing deadline, which is April 15, 2024. The IRA contribution limit is $7,000, and the $1,000 catch-up contribution — if you are 50 or older — takes the total maximum contribution to $8,000.
IRS 401(k) limit 2024
- The 401(k) contribution limit for this year is $23,000. If you are 50 and older, you can contribute an additional $7,500 catch-up contribution.
- In that case, your total max 401(k) contribution for the 2024 tax year would be $30,500.
The 401(k) contribution deadlines and limits also apply to Roth 401(k) and 403(b) retirement plans. This year's contribution limits for 457 plans are similar, but there is a separate catch-up contribution limit of $7,500 if you’re nearing retirement age.
FAQs
How much can an employer contribute to a solo 401(k)?
If you contribute to your solo 401(k) as an employee, you can contribute up to $23,000 for 2024. The total solo 401(k) contribution limit, if you’re 50 or older, is $30,500.
Nonelective contributions to a solo 401(k) made as an employer are generally limited to 25% of compensation, according to the IRS. If you’re self-employed, your total contributions can’t exceed your earned income for the 2024 tax year.
There’s also an overall contribution limit of $69,000 for 2024. So, total contributions to a participant's account (not including catch-up contributions for those 50 and older) cannot exceed that amount.
When do RMDs start?
A required minimum distribution (RMD) is the minimum amount you must withdraw from your retirement savings account each year if you are at least 73.
Keep in mind that your RMDs generally must be taken by Dec. 31. There are some exceptions for inherited IRAs and Roth IRAs, and recent RMD rule delays to know.
How are RMDs calculated? RMDs are calculated by dividing the value of your retirement account by a distribution period based on your age in the year you take the distribution. Remember: RMDs are taxed as ordinary income and can impact your federal income tax bracket.
Related: December 31 RMD Deadline: What to Know
How much is the Saver’s Credit 2024?
Depending on your income, you may qualify for the Saver’s Credit, which is a tax break designed to encourage taxpayers with lower and middle incomes to save for retirement.
For 2024, if your modified adjusted gross income (MAGI) is $38,250 or less, you may be eligible to claim up to $1,000 for the Saver’s Credit. If you’re married and filing jointly, your modified adjusted gross income must be $76,500 or less to claim the up to $2,000 credit.
The Saver’s Credit is based on a percentage (i.e., 10%, 20%, or 50%) of the first $2,000 (single filers) or $4,000 (married filing jointly) that you contribute to your 401(k), IRA, or Roth IRA retirement account. But rollover contributions won’t count toward the saver’s credit calculation.
Related: Savers Credit: Do You Qualify?
Looking ahead: What are the 401(k) contribution limits for 2025?
The IRS has announced inflation adjustments for the 2025 401(k) contribution limits and the IRA contribution limit for 2025. The 401(k) contribution limit for next year (returns you'll file in early 2026) increased to $23,000.
That 2025 401(k) contribution limit, which is $500 more than it was for the previous tax year, applies to employees who participate in 401(k) plans, most 457 plans, and the federal government Thrift Savings Plan. The catch-up contribution limit for those age 50 or older participating in those plans will remain 7,500 for 2025.
Note: However, due to a new provision in the SECURE 2.0 Act, those ages 60 and 63 will be eligible to contribute up to $11,250 as a "super" catch-up contribution.
Will the IRA contribution limit increase for 2025? The IRA contribution limit for 2024 was up by $500 from 2023. So, for 2024, you can contribute up to $7,000 to your IRA in 2024 and 2025. If you’re 50 or older, the IRA catch-up contribution limit isn’t adjusted for inflation so, it will stay at $1,000 for 2025.
Related: IRA and 401(k) Contribution Limits Rise Again for 2024
Bottom Line
401(k) contribution deadline: What you can do
Don’t wait for the year-end 401(k) contribution deadline to sit down and evaluate your savings for retirement. Instead, check your retirement savings account now to see if you’re on track to make your max 401(k) contributions by Dec. 31.
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