Annual Contribution Information
2024 Traditional & Roth IRA Contribution Limits
| Plan Name | Standard Limit | Catch-up Limit (Age 50 and older) |
|---|---|---|
| Traditional | $7,000 | $8,000 |
| Roth* | $7,000 | $8,000 |
*Modified AGI Limits:
2024
2024 Traditional & Roth IRA Contribution Deadline is 4/15/2025.*
SEP IRA Contribution Limits
| Year | Max Dollar Allocation | Max Considered Compensation |
|---|---|---|
| 2024 | $69,000 | $345,000 |
| 2023 | $66,000 | $335,000 |
The maximum amount that can be contributed to a simplified pension plan (SEP) plan is 25% of an employee’s compensation, which is capped at a maximum as indicated above.
2024 SEP IRA Contribution Deadline is April 15, 2025 or until the date of tax-filing extension, if applicable.
SIMPLE IRA Contribution Limits
| Year | Standard Limit | Catch-up Limit (Age 50 and older ) |
|---|---|---|
| 2024 | $16,000 | $19,500 |
| 2023 | $15,500 | $19,000 |
With the matching option, you match the employee contribution dollar for dollar up to 3%, not to exceed the salary deferral limit for that year. In any two out of five consecutive years, you may match a smaller percentage, not less than 1%. You only contribute to the retirement accounts of the eligible employees who make salary deferral contributions.
The nonelective contribution option requires that you contribute 2% of each eligible employee's compensation up to a maximum of $6,900 for 2024 ($6,600 for 2023). Employees do not have to make contributions themselves to get the nonelective contribution.
New for 2024: Employers with 25 employees or fewer (who earned $5,000 or more in 2023) must allow an increased employee salary deferral limit of $17,600 (plus a $3,850 catch-up limit for those age 50 and older).
While employers with 26 to 100 employees (who received at least $5,000 in compensation in 2023) may voluntarily allow the increased salary deferral limits above, the employer has to provide prior notice of the higher limits to all employees at least 60 days before the end of 2023. Larger employer contributions are also required if the higher limit was communicated in time.