The IRS recently released adjusted contribution limits, standard deductions, and tax brackets for 2024.
Those with Traditional or Roth IRAs will see an increase of $500, making the 2024 contribution limit $7,000. The catch-up contribution limit for IRAs remains at $1,000 for those aged 50 or over.
The income phase-out range for taxpayers making contributions to a Roth IRA has increased between $146,000 and $161,000 for singles and heads of household, respectively, compared to the current $138,000 and $153,000 amounts. For married couples filing jointly, the income phase-out range increased between $230,000 and $240,000, compared to the current $218,000 and $228,000.
For individuals with a 401(k) plan, the contribution limit is $23,000 for 2024, an increase of $500 from this year. 401(k) catch-up contribution limits for individuals 50 and older remain at $7,500 for 2024. This means individuals age 50 or older with a 401(k) can set aside up to $30,500 in the upcoming year.
The SIMPLE retirement account limit for 2024 is $16,000, up from $15,500. The catch-up contribution limit for employees aged 50 and over participating in SIMPLE plans will stay at $3,500.
For 2024, standard deduction rates increased to the following:
All seven federal tax brackets were increased for 2024. This will allow more earnings to be taxed at lower rates generating more take-home pay for each individual.
| Tax Rate | 2024 Taxable Income | 2023 Taxable Income |
| 10% | $0 to $11,600 | $0 to $11,000 |
| 12% | Over $11,600 to $47,150 | Over $11,000 to $44,725 |
| 22% | Over $47,150 to $100,525 | Over $44,725 to $95,375 |
| 24% | Over $100,525 to $191,950 | Over $95,375 to $182,100 |
| 32% | Over $191,950 to $243,725 | Over $182,100 to $231,250 |
| 35% | Over $243,725 to $609,350 | Over $231,250 to $578,125 |
| 37% | Over $609,350 | Over $578,125 |
| Tax Rate | 2024 Taxable Income | 2023 Taxable Income |
| 10% | $0 to $23,200 | $0 to $22,000 |
| 12% | Over $23,200 to $94,300 | Over $22,000 to $89,450 |
| 22% | Over $94,300 to $201,050 | Over $89,440 to $190,750 |
| 24% | Over $201,050 to $383,900 | Over $190,750 to $364,200 |
| 32% | Over $383,900 to $487,450 | Over $364,200 to $462,500 |
| 35% | Over $487,450 to $731,200 | Over $462,500 to $693,750 |
| 37% | Over $731,200 | Over $693,750 |
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