One of the best money moves you can do for your future self is invest. Every year the IRS announces updates on how much you can contribute to your retirement accounts. Whether you have an existing retirement plan or looking to start one, investing in your future today will help you stay ahead of inflation and build your wealth for your best retirement life. Check out the summary of 2024 contribution limits below.
401(k), 403(b), 457 plans and the federal government's Thrift Savings Plan
Employees under age 50: $23,000
Additional Catch-up provision (age 50 and over): $7,500
Traditional IRA and Roth IRA Plans
Individuals with income eligibility: $7,000
Additional Catch-up provision (age 50 and over): $1,000
For business owners, here's the update for 2024:
Traditional and Roth Solo 401(k)s
Employer and Employee: $69,000
Additional Catch-up Provision (age 50 and older): $7,500
SEP IRAs
Employer and Employee: $69,000
Additional Catch-up Provision not allowed
SIMPLE IRA
Employer and Employee: $16,000
Additional Catch-up Provision: $3,500
For more details, head to: https://www.irs.gov
Here are additional pro money tips:
- Remember, you have until April 15, 2024 to make contributions for the 2023 tax year.
- Automate your contributions and make changes in January to ensure they count towards 2024.
- Review your 2024 income projections to ensure that you're within the appropriate eligibility guidelines.
- Work with your CPA or tax professional and your financial advisor for any specific questions or changes to your situation.
Adjusting your contributions to your retirement accounts is a great action step, but reviewing how your portfolio or fund allocation is set-up is equally important to ensure that your money aligns with your goals. For a customized approach to your retirement plan, book your call with our team and let's make 2024 your best year of investing yet!