Contribution limits for IRAs and Small Business Retirement accounts

Contribution limits for IRAs and Small Business Retirement accounts

This table includes contribution limits established for tax-advantaged retirement accounts by the Internal Revenue Service (IRS). Contribution limits are subject to a Cost-of-Living Adjustment (COLA) each year.

Type of retirement account20232024Key informationCatch-up contributions (account holder age 50+)
Traditional IRA, Roth IRA, Custodial IRA

$6,500 or 100% of compensation, whichever is less

Traditional IRA Phase Out Ranges
Single Taxpayer
$73,000 - $83,000
Married Filing Jointly
$116,000 - $136,000
Married Filing Separate
$0 - $10,000

 

Roth IRA Phase Out Ranges
Single Taxpayer
$138,000 - $153,000
Married Filing Jointly
$218,000 - $228,000
Married Filing Separate
$0 - $10,000

 

$7,000 or 100% of compensation, whichever is less

Traditional IRA Phase Out Ranges
Single Taxpayer
$77,000 - $87,000
Married Filing Jointly
$123,000 - $143,000
Married Filing Separate
$0 - $10,000

 

Roth IRA Phase Out Ranges
Single Taxpayer
$146,000 - $161,000
Married Filing Jointly
$230,000 - $240,000
Married Filing Separate
$0 - $10,000

 

  • Catch up contribution limit on behalf of a non-working spouse is up to the maximum contribution limit to IRA belonging to spouse.
  • The limit may be indexed for inflation $500 annually.
$1,000
SEP-IRA
  • Lesser of $66,000 or
  • 25% of compensation (20%* if self- employed) up to $66,000
  • Lesser of $69,000 or
  • 25% of compensation (20%* if self- employed) up to $69,000
 None
Qualified Retirement Plan (QRP)
  • Lesser of $66,000 or
  • Employer tax deduction limited to $330,000 compensation cap per employee
  • Lesser of $69,000 or
  • Employer tax deduction limited to $345,000 compensation cap per employee
 None
SIMPLE IRA salary deferral$15,500 or 100% of compensation, whichever is less (under age 50)$16,000 or 100% of compensation, whichever is less (under age 50) 

2023: $3,500

2024: $3,500

SIMPLE IRA employer match
  • Employer salary contributions dollar for dollar up to 3% of compensation (can be reduced to 1% in any two out of five years) or
  • A non-elective contribution of 2% of compensation for eligible employees (including those who decided not to contribute themselves)
  • Maximum Compensation Cap of $330,000
  • Employer salary contributions dollar for dollar up to 3% of compensation (can be reduced to 1% in any two out of five years) or
  • A non-elective contribution of 2% of compensation for eligible employees (including those who decided not to contribute themselves)
  • Maximum Compensation Cap of $345,000
 None
Individual 401(k) — includes employer contribution and salary deferral
  • Employer salary contribution — 25% of compensation (20%* if self-employed) to a maximum $66,000
  • Salary deferral — lesser of $22,500 or 100% of compensation
  • Employer salary contribution — 25% of compensation (20%* if self-employed) to a maximum $69,000
  • Salary deferral — lesser of $23,000 or 100% of compensation
 

2023: $7,500

2024: $8,000

Defined Benefit PlanMaximum Annual Lifetime Benefit Payable is $265,000Maximum Annual Lifetime Benefit Payable is $275,000

Key employee who, at any time during the plan year, is

  • At least a 5% owner or
  • A 1% owner with an annual compensation of $150,000 or more or
  • An officer having annual compensation greater than $215,000 (subject to cost-of-living adjustment).
 

 

* Self-employed individuals have a maximum contribution of 20%. This percentage of the business’s net profit, after subtracting the self-employment tax deduction, is equivalent to a 25% employee contribution. Consult IRS Publication 560 for more information. Schwab does not provide tax or legal advice. For specific recommendations, please have your client consult a tax advisor or legal counsel.

Combined total does not include catch-up contributions for individuals aged 50 and over.