Happy New Year! Let’s kickoff 2024 with some good news for retirement savers.
In case you missed the announcement in November last year, the IRS increased the 2024 contribution limits for retirement accounts. Here are the new limits:
For 401(k), 403(b), and the Thrift Savings Plan (TSP) you can contribute a maximum of $23,000 for the whole year. Moreover, if you are age 50 or older, you can contribute an additional $7,500, totaling $30,500 max annual contribution.
If you have a Traditional IRA or Roth IRA, you can contribute a maximum of $7,000 each year. For those age 50 or older, you can contribute an extra $1,000 for a total of $8,000 for the year.
Check with your HR department or manager to see what retirement plans are available to you or consider opening a Traditional IRA or Roth IRA if your employer doesn’t offer any retirement benefits. We can help you decide on which is best for you to meet your long-term goals and calculate a suitable savings rate.
THE BOTTOM LINE:
Don’t despair if you haven’t started saving for retirement or can’t max out your retirement accounts. Saving even small amounts now can reap big rewards over time. The short-term decisions you make now can significantly impact your overall long-term wealth