Near the end of each year, the IRS assesses inflation to determine if it will update its annual max contribution limits for tax-advantaged retirement accounts such as Roth and traditional IRAs, 401(k)s, HSAs, 529 plans, and more. Below, we cover the IRS’s 2024 max contribution limits, as well as income limits for Roth IRAs, income taxes, and capital gains.
If you’ve put out the dumpster fire of your personal finances and are working your way up the FIRE ladder to your financial freedom, these types of accounts are great legal tax hacks to keep more of your money working for you. While maxing them out isn’t possible and/or the best fit for every individual’s financial planning, we recommend utilizing some of them along your journey as they fit into your vision of retirement.
Last updated: January 2024
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2024 Federal Income Tax Brackets
For your 2024 tax return (return you’ll file in 2025), the IRS didn’t change the tax rates but did increase the income limits for federal income tax brackets to adjust for inflation.
| Tax Rate | Single | Head of Household | Married Filing Jointly or Qualifying Widow | Married Filing Separately |
| 10% | $0 to $11,600 | $0 to $16,550 | $0 to $23,220 | $0 to $11,600 |
| 12% | $11,601 to $47,150 | $16,551 to $63,100 | $23,221 to $94,300 | $11,601 to $47,150 |
| 22% | $47,151 to $100,525 | $63,101 to $100,500 | $94,301 to $201,050 | $47,151 to $100,525 |
| 24% | $100,526 to $191,950 | $100,501 to $191,950 | $201,051 to $383,900 | $100,526 to $191,950 |
| 32% | $191,951 to $243,725 | $191,951 to $243,700 | $383,901 to $487,450 | $191,951 to $243,725 |
| 35% | $243,726 to $609,350 | $243,701 to $609,350 | $487,451 to $731,200 | $243,726 to $365,600 |
| 37% | $609,351 and up | $609,351 and up | $731,201 and up | $365,601 or more |
We won’t get bogged down in how marginal tax brackets work here, but it’s important to know that with a progressive tax system like we have in the US, you don’t pay the highest tax rate on your entire income. You only pay the rates noted above on the income that falls within the range noted. Also remember, the income taxed is after tax deductions and tax credits, not every single dollar you make.
Visit our articles on personal taxes to learn more.
2024 Capital Gains Tax Brackets
While the IRS typically taxes short-term gains on investments at your income tax rate (see the previous section), they tax long-term capital gains at a significantly lower rate.
Below are the total taxable income ranges for the three tiers of capital gains for 2024.
| Tax Rate | Single | Head of Household | Married Filing Jointly | Married Filing Separately |
| 0% | $0 to $47,025 | $0 to $63,000 | $0 to $94,050 | $0 to $47,025 |
| 15% | $47,026 to $518,900 | $63,001 to $551,350 | $94,051 to $583,750 | $47,026 to $291,850 |
| 20% | $518,901 and up | $551,351 and up | $583,751 and up | $291,851 and up |
It’s important to note that the capital gains tax isn’t a progressive system like the income tax brackets. Your total income will determine the singular rate you pay on all your long-term capital gains.
Visit our articles on personal taxes and investing to learn more.
2024 Roth IRA Income Limits
A Roth IRA is a great way to generate tax-free income for retirement, and the IRS knows it. They limit the income on who is eligible to directly contribute to a Roth IRA. (There are Backdoor Roth IRA and Mega Backdoor Roth tax loopholes for high-income earners.)
The 2024 income requirements for 2024 increased significantly to adjust for inflation, which is great for individuals that were on the margins.
| Filing Status | Modified Adjusted Gross Income (MAGI) | Contribution Limit |
| Single | < $146,000 | $7,000 |
| ≥ $146,000 and < $161,000 | Pro-rated amount | |
| ≥ $161,000 | $0 | |
| Married Filing Jointly | < $230,000 | $7,000 |
| ≥ $230,000 and < $240,000 | Pro-rated amount | |
| ≥ $240,000 | $0 | |
| Married Filing Separately | < $10,000 | Pro-rated amount |
| ≥ $10,000 | $0 |
Similar to the tax brackets as mentioned above, income limits for Roth IRAs aren’t based on your gross salary. It’s based on a somewhat complicated calculation of the modified adjusted gross income (MAGI) because the IRS never likes to make anything simple or easy to understand.
Visit the IRS’s most recent page on Roth IRAs if you’re within the phase-out range and want to determine your contribution limit. Here’s the 2023 Roth IRA contributions that you can make for reference. It includes the calculation.
Visit our hub on personal taxes to learn more or drop us a line in our budgeting and personal finances Facebook group if you have a particular question we haven’t covered yet.
2024 Roth and Traditional IRA Max Contribution Limits
Roth IRA 2024 Contribution Limit
For 2024, the maximum contribution limit for a Roth IRA is $7,000 as noted in the table above.
For individuals 50 and above, there is an additional amount allowed called the catch-up contribution. That amount is currently $1,000, which brings the max contribution limit up to $8,000 for these individuals.
These same contribution limits apply for Backdoor Roth IRAs, but differ for Mega Backdoor Roths (see below).
Traditional IRA 2024 Contribution Limit
Traditional IRA contribution limits are the same as Roth IRAs, but don’t have the income limits on contributing.
Update Your Automatic Withdraws
If you follow our advice of paying yourself like an autopay bill, don’t forget to update your auto withdraw amount to account for the increase. Alternatively, you can schedule a one-time contribution for the difference to keep a nice, round monthly investment amount. This is what we do.
Learn more about IRAs.
2024 401(k) Contribution Limit
Individuals who participate in employer-sponsored retirement plans such as 401(k)s, 403(b)s, TSPs, and most 457 plans can contribute a maximum of $23,000 in 2024 between Roth and traditional funds.
The catch-up contribution for 401(k)s and other employer-sponsored plans is $7,500 for individuals 50 years of age and older.
Learn more about employer-sponsored retirement plans.
Mega Backdoor Roth Contribution Limits
Mega Backdoor Roths are hella complicated and far beyond the scope of this page, but if you’re a high-income earner who takes advantage of this tax loophole, your numbers of concern for 2024 are:
- The pretax and Roth employee contributions max is $23,000
- The maximum for combined employee and employer contributions is $69,000
- Catch-up contributions for individuals 50 and over is an additional $7,500 on top of both limits
2024 HSA Max Contribution Limits
HSAs are amazing tax-advantaged accounts if you can afford to be on a high-deductible health plan (HDHP), which is a requirement for eligibility to open and contribute to an HSA.
| Contribution Limit | |
| Self Coverage | $4,150 |
| Family Coverage | $8,300 |
| Catch-Up Contribution (55+) | Additional $1,000 for both |
Learn more about HSAs.
2024 Annual Contribution Limit for 529 Plans
Since you open 529 plans under the name of a beneficiary, they follow the guidance of the annual gift tax exclusion for estate taxes. For 2024, the annual gift tax exclusion increased to $18,000.
Superfunding a 529 plan is still an option for those who want to dump a lot into college savings for their kiddos.
Learn more about college savings.