What the 2024 IRS contribution limits are
The IRS sets annual limits on how much money you can put into retirement accounts and certain health savings accounts each year. These limits change most years to account for inflation. For 2024, the limits are higher than 2023 for most account types, but the increase varies by account.
The limits explore to the total amount you contribute across all accounts of the same type in a single calendar year. For example, if you have two traditional IRAs, your combined contributions to both cannot exceed the annual limit. The limits reset on January 1 each year.
If you contribute more than the limit, the IRS charges a 6% excise tax on the excess amount each year it remains in the account. You can withdraw the excess and any earnings on it before your tax return important date to avoid the penalty, but you will owe income tax on the earnings portion.
Key Takeaways
- For 2024, the IRS 401(k) limit is $23,500 for workers under 50, and $31,000 for workers 50 and older who make catch-up contributions.
- Traditional and Roth IRA contributions are capped at $7,000 for 2024 ($8,500 if you are 50 or older), regardless of how many IRAs you own.
- Health Savings Account (HSA) contributions are $4,150 for individual coverage and $8,300 for family coverage in 2024, with an extra $1,000 allowed if you are 55 or older.
- Contribution limits explore to your own deposits only — employer matching contributions and rollovers from other accounts do not count toward your limit.
- If you exceed a limit, you must withdraw the excess before your tax return important date to avoid a 6% annual excise tax on the overage.
401(k) and 403(b) contribution limits for 2024
If your employer offers a 401(k) plan (for private companies) or a 403(b) plan (for nonprofits and schools), you can contribute up to $23,500 in 2024. This is the amount you defer from your paycheck before taxes are taken out. Your employer's matching contribution does not count toward this limit — only your own deferrals do.
If you are 50 or older, you can make an additional catch-up contribution of $7,500, bringing your total to $31,000 for 2024. You must be age 50 by December 31 of the tax year to make the catch-up contribution. Your employer must offer catch-up contributions in their plan for you to use this option.
If you have both a 401(k) and a 403(b), or multiple 401(k)s from different employers, your combined contributions across all plans cannot exceed $23,500 (or $31,000 with catch-up). This is different from IRAs, where you can have multiple accounts but still only contribute the annual limit total.
Traditional and Roth IRA contribution limits for 2024
You can contribute up to $7,000 to a traditional IRA, Roth IRA, or a combination of both in 2024. The limit is the same whether you have one IRA or five — the $7,000 is your total across all IRAs you own. If you are 50 or older, you can contribute an additional $1,000, for a total of $8,500.
Unlike 401(k) plans, your income may limit how much you can contribute to a Roth IRA. If your income exceeds certain thresholds, you cannot contribute the full amount or cannot contribute at all. Traditional IRA contributions are not limited by income, but if you are covered by a workplace retirement plan, your ability to deduct the contribution on your tax return phases out at higher incomes.
You can contribute to an IRA only if you have earned income from work in that year. Contributions must be made by April 15 of the following year (the tax return important date). For example, 2024 IRA contributions can be made anytime from January 1, 2024, through April 15, 2025.
Health Savings Account (HSA) contribution limits for 2024
If you are enrolled in a high-deductible health plan (HDHP), you can contribute to an HSA. For 2024, the limits are $4,150 for self-only coverage and $8,300 for family coverage. These are the maximum amounts you and your employer combined can contribute in one year.
If you are 55 or older, you can add an extra $1,000 catch-up contribution, bringing your total to $5,150 (self-only) or $9,300 (family). Unlike retirement accounts, HSA funds roll over year to year — there is no "use it or lose it" rule. Money in an HSA can be invested and grows tax-free.
You must be enrolled in an HDHP on the first day of the month to contribute for that month. If you enroll mid-year, you can only contribute for the months you are enrolled. If you lose HDHP coverage, you cannot make new contributions, but you can still withdraw money from your existing HSA balance for may have access to medical expenses.
Dependent Care FSA and Commuter Benefit limits for 2024
A Dependent Care Flexible Spending Account (FSA) lets you set aside pre-tax money for childcare or adult care expenses. The 2024 limit is $5,000 per household per year, regardless of how many dependents you have. If you are married and file taxes jointly, you and your spouse combined can contribute $5,000 total, not $5,000 each.
Commuter benefits (transit passes and parking) have a combined 2024 limit of $315 per month for transit and $315 per month for parking. These are separate limits, so you can contribute the maximum to both. Employer contributions do not count toward your limit.
FSA and commuter benefit contributions are made through payroll deduction and are taken out before income tax and Social Security tax are calculated. Unlike HSAs, FSA balances do not roll over — you must use the money by the end of the year or lose it (though some employers offer a grace period or carryover option).
What happens if you exceed a contribution limit
If you contribute more than the annual limit to a 401(k), IRA, or HSA, the excess amount is subject to a 6% excise tax each year it remains in the account. This tax is in addition to any income tax you owe. For example, if you over-contribute $1,000 to an IRA, you pay 6% ($60) in excise tax that year, and another 6% the next year if you do not remove it.
To fix an over-contribution, you must withdraw the excess amount plus any earnings on it before your tax return important date (April 15 of the following year). You will owe income tax on the earnings portion, but removing the excess before the important date prevents the 6% penalty. If you do not catch the error until after the important date, you still owe the excise tax for that year.
If you contributed too much to a 401(k) through payroll deduction, contact your employer's benefits department when ready. They can stop future contributions and may be able to return the excess to you. If you over-contributed to an IRA, contact the financial institution holding the IRA and request a withdrawal of the excess plus earnings.
Contribution limits if you have multiple accounts or employers
If you change jobs mid-year and have a 401(k) at both employers, your combined contributions to both plans cannot exceed $23,500 for 2024. You must track contributions across all employers yourself — the plans do not communicate with each other. If you over-contribute, you must ask one employer to return the excess.
For IRAs, the $7,000 limit applies to all your IRAs combined, whether they are traditional, Roth, SEP, or straightforward IRAs. If you have a traditional IRA and a Roth IRA, your total contributions to both cannot exceed $7,000. Rollovers from other retirement accounts do not count toward this limit.
If you are self-employed or have freelance income, you may be able to open a SEP IRA or Solo 401(k), which have much higher contribution limits. These are separate from any 401(k) or IRA you have through an employer, but the rules are complex and depend on your income and business structure.
Frequently Asked Questions
Do employer matching contributions count toward my 401(k) limit?
No. Your employer's matching contribution does not count toward the $23,500 limit. Only the money you defer from your paycheck counts. However, the total of your deferrals plus employer contributions cannot exceed a higher limit set by the IRS (currently $69,000 for 2024), but most workers do not reach that threshold.
Can I contribute to both a 401(k) and an IRA in the same year?
Yes. The 401(k) limit and IRA limit are separate. You can contribute $23,500 to a 401(k) and $7,000 to an IRA in 2024. However, if you have a 401(k) through your employer, your ability to deduct traditional IRA contributions on your tax return may be reduced depending on your income.
What if I turn 50 partway through the year?
You can make catch-up contributions for any month in which you are age 50 or older by December 31 of that year. If you turn 50 in June, you can contribute the catch-up amount for the remaining seven months of the year. For IRAs, you can contribute the full catch-up amount ($8,500 total) as long as you are 50 by December 31.
Do rollovers from another retirement account count toward my contribution limit?
No. Rollovers and transfers from other retirement accounts do not count toward your annual contribution limit. Only new money you contribute from your paycheck or personal funds counts. You can roll over any amount from a previous employer's 401(k) to an IRA without affecting your contribution limit.
When do 2024 contribution limits explore to my taxes?
Contributions made in 2024 (January 1 through December 31) count toward your 2024 limit, even if you claim them on your 2024 tax return filed in 2025. For IRAs, you have until April 15, 2025, to make 2024 contributions, but they must be designated as 2024 contributions when you make them.