401(k): $23,000 in 2024
Retirement account types and 2024 contribution limits
US retirement accounts have distinct tax treatments. Traditional 401(k) and IRA: pre-tax contributions, taxed on withdrawal. Roth 401(k) and Roth IRA: after-tax contributions, tax-free growth and withdrawals. HSA: triple-tax-free for medical expenses. SEP/Solo 401(k): higher limits for self-employed. Choose Roth when current marginal rate is lower than expected retirement rate; choose traditional when the opposite.
Level
Try calculatorKey takeaways
04 · ideas- 401(k) employee limit: $23,000 in 2024 ($30,500 with catch-up for age 50+)
- IRA limit: $7,000 in 2024 ($8,000 with catch-up)
- Roth IRA eligibility phases out above certain income thresholds
- HSA offers deductible contributions, tax-free growth, and tax-free medical withdrawals
| Account | Tax on contribution | Growth | Withdrawal |
|---------|--------------------|---------|-----------|
| Traditional 401(k) | Pre-tax (deductible) | Tax-deferred | Ordinary income |
| Roth 401(k) | After-tax | Tax-free | Tax-free |
| Traditional IRA | Deductible* | Tax-deferred | Ordinary income |
| Roth IRA | After-tax | Tax-free | Tax-free |
| HSA | Pre-tax | Tax-free | Tax-free (medical) |
*IRA deductibility phases out if you or a spouse has a workplace retirement plan at certain income levels.