Reaction to the Fed meeting
March 16, 2023
Retirement
Retirement contribution limits and deadlines
January 5, 2024
Key takeaways
Contribution deadline
Contributions for 2023 can be made as late as April 15, 2024.
Catch-up contributions
People age 50 and older can save additional money.
Planning is an important element when working towards financial goals, especially when thinking about retirement. Learn more about retirement options available for small business employers and individual investors. Knowing the contribution maximums, plan establishment (or new account) deadlines, and funding deadlines can help enhance retirement outcomes.
For small business retirement plans
Employer retirement plans offer a systematic approach to saving for retirement and often have higher savings potential. Following each plan, you'll find the required materials to open an Invesco account.
|
Contribution maximum |
Funding deadline1 |
||
2024 |
2023 |
2024 |
2023 |
|
Participant contributions |
$23,000 |
$22,500 |
Dec. 31 |
Dec. 31 |
Catch-up contributions at age 502 |
$7,500 |
$7,500 |
||
$69,000 |
$66,000 |
Tax filing deadline+ extension |
||
New plan deadline: Tax filing deadline + extension5 |
||||
Get started: Complete Solo 401(k) kit |
||||
|
Contribution maximum |
Funding deadline1 |
||
2024 |
2023 |
2024 |
2023 |
|
Employer contribution per participant |
$69,000 |
$66,000 |
Dec. 31 |
Dec. 31 |
New plan deadline: Tax filing deadline + extension |
||||
Get started: Complete SEP IRA Application |
||||
|
Contribution maximum |
|||
2024 |
2023 |
2024 |
2023 |
|
Participant contributions |
$16,000 |
$15,500 |
Dec. 31 |
Dec. 31 |
Employer contributions6 |
Mandatory |
Tax filing deadline+ extension |
||
Catch-up contributions at age 502 |
$3,500 |
$3,500 |
Dec. 31 |
Dec. 31 |
New plan deadline: Oct. 1 |
||||
Get started: Complete SIMPLE Employer Plan Application and Participant Application |
||||
|
Contribution maximum |
Funding deadline1 |
||
Payroll Deduction IRA7 |
2024 | 2023 | 2024 | 2023 |
Traditional and Roth IRAs8 |
$7,000 |
$6,500 |
Dec. 31 |
Dec. 31 |
$1,000 |
$1,000 |
Dec. 31 |
Dec. 31 | |
New plan deadline: None |
||||
Get started: Complete Payroll Deduct Employer Application and IRA Application |
||||
For individual retirement accounts
Contributing to an IRA can help kick-start retirement savings or boost existing retirement savings strategies while taking advantage of its tax benefits. To support savings efforts, use the IRS’ direct deposit program to invest tax refunds.
IRS income limits
While income eligibility requirements are generally needed when contributing to a traditional or Roth IRA, no income requirements are needed if no tax deduction is taken in a traditional IRA. This is referred to as a nondeductible IRA. Learn more about how these plans compare and speak with your financial or tax professional to determine the solution most suitable for your situation.
Traditional IRA deduction range10 |
2024 |
2023 |
Single, covered by a workplace plan |
$77,000-$87,000 |
$73,000-$83,000 |
Joint tax return for person covered by a workplace retirement plan |
$123,000-$143,000 |
$116,000-$136,000 |
Married filing separately for person covered by a workplace retirement plan |
$0-$10,000 |
$0-$10,000 |
Joint tax return for spouse not covered by a workplace retirement plan |
$230,000-$240,000 |
$218,000-$228,000 |
Roth IRA contribution phase-out range11 |
2024 |
2023 |
Single, head of household, or married filing separately12 |
$146,000-$161,000 |
$138,000-$153,000 |
Married filing jointly |
$230,000-$240,000 |
$218,000-$228,000 |
Married filing separately and lived with spouse13 |
$0-$10,000 |
$0-$10,000 |
Footnotes
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1
Contributions are processed when funding is received. Invesco does not monitor contributions.
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2
The year when turning age 50, catch-up contributions are permissible beginning Jan 1.
-
3
The catch-up contributions are in addition to the contribution amounts indicated.
-
4
When calculating contributions, compensation is defined as $345,000 for 2024 and $330,000 for 2023.
-
5
The deadline to establish a Solo 401(k) plan is Dec 31 for incorporated businesses seeking to make salary deferrals.
-
6
Mandatory employer contributions are required.
-
7
Contributions to a Payroll Deduction IRA may impact contributions to other traditional or Roth IRAs maintained.
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8
Contributions to traditional and Roth accounts are aggregated.
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9
Please call Client Services at 800 950 4246 to make additional contributions.
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10
Full deductions are permitted below the income range and reduce to zero at the income maximum.
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11
Full contributions are permitted below the income range and reduce to zero at the income maximum.
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12
Person did not live with a spouse at any time during the year.
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13
Person lived with a spouse during the calendar year.
