New Contribution Limits for Retirement Plans, Health & Dependent Savings Accounts, and Estate & Gift Tax for 2024

Estate Planning | Healthcare | InspireHer: Plancorp Women’s Initiative

 Meaghan Faerber By: Meaghan Faerber

With a new year comes many new changes – putting up a new calendar, making New Year’s resolutions, AND new contribution and gifting limits imposed by the IRS.

The IRS reviews the contribution limits and income phase-out ranges for retirement plans, health and dependent care savings accounts, and gift tax exclusions annually, and makes modifications if needed, mainly for inflation.

It’s wise to check these limits each year before making contribution elections to your employer provided benefits plans, contributions to various accounts or gifts throughout the year.

Beginning January 1, 2024, the contribution limits to many retirement plans were increased. Maxing out your employer provided retirement plan is one of the best ways to save for retirement because it often times allows you to receive “free money” with employer matching, along with an immediate tax benefit by reducing your taxable income.

Below are several of these changes as they compare to 2023:

ret-plan-limits-mobileMany people take advantage of their employer provided retirement plans, but some also want to save more than the plan allows. One way to do this is by making contributions to a Traditional or Roth IRA.

You are allowed a tax deduction for contributions made to a Traditional IRA if your income is below a certain threshold. If your income is too high for the deductible contribution, you can still make the Traditional IRA contribution, but no tax benefit is received for the initial investment.

Similarly, you are only allowed to contribute directly to a Roth IRA if your income is below a certain threshold. To see if you are eligible to make these contributions in 2024, here are the new income phase-out ranges:


In recent years, the IRS made several changes to the contribution limits for Health and Dependent Care Savings & Spending Accounts. For 2024, those accounts saw little changes:




The final change we want to point out is the increased estate and gift tax limits for 2024. IRS typically increases this limit each year to account for inflation so 2024 limits saw a significant bump:


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This material has been prepared for informational purposes only and should not be used as investment, tax, legal or accounting advice. All investing involves risk. Past performance is no guarantee of future results. Diversification does not ensure a profit or guarantee against a loss. You should consult your own tax, legal and accounting advisors.


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Meaghan Faerber joined the Plancorp team in October 2020 after spending the first 10 years of her career in public accounting. After graduating from the University of Missouri, Meaghan began her career at PricewaterhouseCoopers, LLP, where she provided income tax services to high net worth families and corporate executives. She continued working with ultra-high net worth individuals, other small business owners, and family office clients as a tax manager at Burds & Kuntz, PC where she expanded her knowledge and expertise in tax planning & compliance, philanthropic endeavors, and family office services. Meaghan brings her tax expertise with her to the Plancorp Family Office practice and is dedicated to helping clients with not only their tax planning needs, but in all aspects of their financial lives. Meaghan lives in Washington, MO with her husband and two young children. She and her husband both grew up in Washington, where they met in high school, and were excited to move back to raise their family in the town they love. Outside of work, Meaghan enjoys exercising, spending time with her family & friends, cooking with her husband, and watching her children grow and experience new things. More »