As we step into the new year soon, it is crucial to stay informed about changes that may impact our financial well-being.
One area that often undergoes adjustments is the contributions limits for retirement accounts. The IRS has recently released the notable changes for the 2024 tax year.
Let’s delve into the details!
Plan Type | Normal Limit | “Age 50” Catch-up Limit |
Traditional/Roth IRA | $7,000* | $1,000* |
SEP IRA | $69,000 | N/A |
SIMPLE IRA | $16,000 | $3,500 |
401(k) | $23,000 | $7,500 |
403(b) | $23,000 | $7,500 |
457 | $23,000 | $7,500 |
Solo 401(k) | $69,000 | $7,500 |
*Please keep in mind that the annual contribution limit is just one part of the IRA contribution limits. The amount one person can contribute can be reduce or eliminated when factoring a person’s modified adjusted gross income (MAGI).
As we embrace the new year, taking a proactive approach to understanding the changes in retirement account contribution limits is essential for sound financial planning.
Whether you’re a young professional just starting your career or a seasoned worker approaching retirement, these adjustments offer opportunities to optimize your savings strategy.
By staying informed and making informed decisions, you can set yourself on a path towards a more secured and comfortable retirement.
To find out more about how much you can specifically save and invest for retirement, CLICK HERE to set up a consultation.