As we enter the new year, the Treasury Department has announced inflation-adjusted limits for 2024 retirement account savings. How different will your retirement contributions look in 2024?
Let’s take a look…
IRA Contribution Limits have increased by $500 for 2024.
- If you are under age 50 for the whole year, your contribution limit will be $7,000.
- If you are age 50 or older on 12/31/24, your contribution limit will be $8,000.
If you make workplace retirement plan contributions, read on. Contact us if you need assistance calculating a per pay period deferral amount.
SIMPLE-IRA contribution limits have increased $500 for 2024.
- If you are under age 50 for the whole year, your contribution limit will be $16,000.
- If you are age 50 or older on 12/31/24, your contribution limit will be $19,500.
401k / 403b / 457b contribution limits have increased $500 for 2024.
- If you are under age 50 for the whole year, your contribution limit will be $23,000.
- If you are age 50 or older on 12/31/24, your contribution limit will be $30,500.
If you contribute the maximum amount to your 401k / 403b / 457b, please make sure to adjust your 2024 contribution amount prior to your first paycheck in 2024.
We recommend that you contribute evenly throughout the year to maximize your company match, unless your company Trues-Up your contribution (not common). If you maximize your contributions prior to the end of the year, you could miss out on the employer match for the remainder of the year.
To maximize your contribution for 2024, your per pay period deferral will be as follows:
If you can elect a $ amount 401k contribution per pay period that is obviously the easiest. If you need help calculating the %, please let us know.
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Bartley Financial has an experienced team of CPAs and CFPs® (Certified Financial Planners®) dedicated to helping clients manage their investment portfolios, plan for retirement, strategize taxes, or execute any other initiatives in pursuit of optimum financial health and minimal financial stress. From our offices in Andover, MA, and Bedford, NH, we work to ease clients’ financial concerns, strengthen their portfolios, and assuage their worry that they don’t know what they don’t know.