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Published: Nov 02, 2023 3 min read
Photo-illustration of a rising arrow and hands holding out money.
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Americans will be able to save more money for retirement in tax-advantaged accounts next year thanks to an inflation adjustment.

Under the new 2024 limits just announced by the IRS, individuals can put up to $23,000 in their employer-sponsored 401(k)s. These accounts are popular retirement savings tools because contributions are made with pre-tax dollars, which can reduce your income for federal tax purposes. Also, employers often offer a match that doesn't count toward that employee contribution limit, making these plans even more attractive.

People age 50 and older can make “catch-up” 401(k) contributions on top of the $23,000 maximum. The catch-up contribution limit will remain $7,500 for 2024, meaning older workers can stash a total of $30,500 in their accounts next year.