CUNA 2023 diamond award trophy icon

CUNA 2023 Diamond Award Winner

Financial Education

Retirement Accounts and Plans in 2024: What Changes Can You Expect?

Learn more about IRA and 401(k) contribution limit increases, 529 plans, and Social Security payments.

Retirement Planning Changes 2024 concept: Piggy with alarm clock and coins.
info dialog icon Learn more about Quorum's competitive, flexible checking account options!

Here are some changes for retirement plans you can expect to see in 2024:

1. IRA and 401(k) contribution limits increase.

Contribution limits for traditional and Roth IRAs are going up in 2024. The limit on annual contributions to an IRA rises to $7,000, up from $6,500. Catch-up contributions for taxpayers aged 50-plus are subject to cost-of-living adjustments (COLA), but these limits remain unchanged for 2024 at $1,000.

The boosted contribution limits for IRAs are only available to account holders having a modified adjusted gross income (MAGI) below the set threshold for the year.

Contribution limits are also going up for 401(k) and other employer-sponsored plans in 2024.

To read the full scoop on these changes, check out the IRS site.

2. 529 plans can now be converted to Roths.

In December of 2022, Congress passed the SECURE 2.0 Act, allowing for a portion of eligible 529s to be converted to a Roth IRA, tax- and penalty-free. Here’s what you need to know:

  • The funds in a 529 account can now be used for qualified education expenses or for retirement.
  • You can now rollover these funds to a Roth IRA.
  • You can now rollover up to $35,000 to an IRA, free of income tax or tax penalties.
  • There are restrictions on who can transfer these funds and when they can do so.
  • Not every state allows these conversions.

3. Starter 401(k) plans are coming.

Starter 401(k) plans, or simplified employer-sponsored retirement plans, are being introduced in 2024. These accounts have lower contribution limits than a standard 401(k), but auto-enrollment is required. In addition, employers are not allowed to make contributions to the account.

For 2024, Starter 401(k) limits are set at $6,000 annually, with an additional $1,000 catch-up contribution allowed for account holders aged 50 and older. Employees can contribute an extra $500 to their 401(k) plan in 2024.

Also in 2024, there are more exceptions allowing employees to tap into their 401(k) plans early without getting hit with penalties– though these distributions are subject to taxation.

4. Updates to full retirement age (FRA) and Social Security payments.

Full retirement age and Social Security payments will see some changes in 2024.

First, Social Security payments are jumping by 3.2% due to COLA adjustments. Social Security recipients will receive an average of $1,907 per month, up from $1,848 per month in 2023. Retirees receiving survivors or spousal benefits will also see an increase in benefits.

The maximum Social Security benefit will be boosted to $4,873 in 2024, up from $4,555 per month in 2023. In addition, the Social Security tax wage base will see changes. The government will only tax the first $168,600 you earn.

Finally, in 2024, $1 for every $3 earned over $56,520 will be withheld for retirees who reach their FRA and hit that amount before their birthday. In addition, retirees earning over $22,320 and falling under their FRA will have $1 withheld for every $2 earned.

No Will? Create an Online Estate Plan. Enjoy 20% off online estate-planning services through our partner Trust & Will. No Legal Fees. No Headaches.

Comments Section

Please note: Comments are not monitored for member servicing inquiries and will not be published. If you have a question or comment about a Quorum product or account, please visit to submit a query with our Member Service Team. Thank you.

Notify of
Inline Feedbacks
View all comments
CUNA 2023 diamond award trophy icon

CUNA 2023 Diamond Award Winner

Financial Education

Quorum derives no benefit from businesses in return for placement in this blog.

Would love your thoughts, please comment.x