- December 3, 2024
- Posted by: FLORES
- Categories: Business Strategy, Human Resources, Payroll
CalSavers Yearly Contribution Limit Increase
Saving for your future.
Contributions to your account will be made automatically from each paycheck. You can let the standard account options kick in or personalize your account setting, your own contribution rate and selecting from the investments that are available within CalSavers. Also, we’ve added an automatic increase feature that will increase your savings rate by 1% each year until your savings rate reaches 8%, unless you choose otherwise.
We know that given the opportunity, most workers would participate in a workplace retirement plan.[2] If the standard savings options feel like too much for you, consider saving at a lower rate. You’ll get to keep more of your paycheck, but you’ll still be saving something for retirement. The sooner you start saving, even if it is just a little bit, the more your money can potentially grow. To make a change to your contribution rate, log in to your account or contact our Client Service Team.
How much is enough?
We want you to be comfortable with your savings rate, use our retirement calculator to experiment with different savings rates.
How much can I contribute?
Because your CalSavers account is a Roth IRA, your savings amount must be within the Roth IRA contribution limits set by the federal government. In 2024, the contribution limits are $7,000 per year to a Roth IRA (and $8,000 per year when you are age 50 or older).
To determine how much money you can contribute, you’ll first need to figure out your Modified Adjusted Gross Income (MAGI). The IRS provides a helpful worksheet in Publication 590-A, Chapter 2 that will walk you through the steps. Once you’ve determined your MAGI, use the scenarios below to determine the maximum amount you can contribute.
Modified Ajusted Gross Income (MAGI) Limits
| Year | Single Filer | Married/Joint Filer | Married/Single Filer |
|---|---|---|---|
| 2023 | $138,000-$153,000 | $218,000-$228,000 | $0-$10,000 |
| 2024 | $146,000-$161,000 | $230,000-$240,000 | $0-$10,000 |
For more resources and information regarding yearly contribution limits, please visit the CalSavers website here to read the full article: https://saver.calsavers.com/home/savers/contributions.html?language=en#
If you have any questions or need help understanding CalSavers, give FLORES a call. Our HR team would love to assist you. Contact us at (619) 588-2411.