YOUR FINANCES
INDUSTRY INSIGHT
YOUR FINANCES
SPONSORED CONTENT
You Can Save More for Retirement in 2024
As an investor , one way you can enhance your long-term retirement security is to fully leverage the potential of taxadvantaged retirement savings vehicles . Each year , the IRS releases new guidelines on the amount of money you can contribute to these accounts . New contribution limits in 2024 allow you to save even more this year through plans such as 401 ( k ) s , 403 ( b ) s and IRAs .
Changes to workplace savings limits
Contribution limits for workplace retirement accounts have been raised by $ 500 for the year 2024 . In 2024 , the IRS allows pre-tax employee contributions to 401 ( k ) or 403 ( b ) plans of :
• $ 23,000 for those under age 50
• $ 30,500 for those age 50 and older ( includes a $ 7,500 “ catch up ” contribution ).
When combined with employer contributions , a maximum of $ 69,000 can be directed to your workplace retirement plans in 2024 ( plus the $ 7,500 catch-up contribution for those age 50 and older ). Note that total contributions can ’ t exceed your annual compensation at the company that houses your plan .
If offered by your employer , you may be able to make after-tax contributions to a Roth 401 ( k ). Note that any after-tax contributions are counted toward the $ 69,000 total maximum limit for employee and employer contributions to workplace plans . Save an amount that makes sense for you , but it can be beneficial to take full advantage of any matching contribution offered by your employer . For example , if an employer offers to match up to 5 % of your income into a 401 ( k ) if you make a similar contribution , it , in effect , means you ’ re doubling your contribution for your retirement savings , before investment earnings are taken into account . This is a great way for your savings to make a big impact .
New IRA contribution limits
IRA contribution limits move up periodically to reflect cost-of-living changes . 2024 is one of those years . The new limits are :
• $ 7,000 for those under age 50
• $ 8,000 for those age 50 and older .
Note that contributions can ’ t exceed 100 % of your earned income if you earn less than the limits stated above . Also , these limits apply to total IRA contributions for the year . This is applicable even if you hold multiple IRAs or make contributions to both Roth IRAs ( which feature the potential for tax-free earnings growth ) and traditional IRAs .
To make fully tax-deductible ( pre-tax ) traditional IRA contributions in 2024 , your modified adjusted gross income cannot exceed :
· $ 77,000 for single or head-of-household tax filers
· $ 123,000 for married couples filing a joint return .
Not everyone can make maximum Roth IRA contributions . In 2024 , full Roth IRA contributions can only occur if your modified adjusted gross income is less than :
• $ 146,000 for single or head-of-household tax filers
• $ 230,000 for married couples filing a joint return .
Save diligently , plan wisely
Determining how much to set aside for retirement and in what types of savings vehicles is best determined through careful planning . The start of a new year is a great time to consider if you want to change or start contributions to these types of accounts . Discuss your retirement strategy with your financial advisor and consult with a tax professional on all tax-related matters .
This Industry Insight was written by Jonathan D . Martin .
Jonathan D . Martin is a Financial Advisor with Ameriprise Financial Services , LLC in Bethel Park , PA . He specializes in financial planning and asset management strategies . Contact Jonathan ’ s office at 412.831.6240 extension 202 , located at 88 Fort Couch Road , Suite 210 , Pittsburgh , PA 15241 , or visit his website at www . ameripriseadvisors . com / jonathan . d . martin . Jonathan is licensed / registered to do business with U . S . residents only in the states of PA , DC , HI , TX , OH , WV , AZ , CA , FL , IL , IN , NC , NJ , SC and VA .
Ameriprise Financial , Inc . and its affiliates do not offer tax or legal advice . Consumers should consult with their tax advisor or attorney regarding their specific situation .
Investment products are not insured by the FDIC , NCUA or any federal agency , are not deposits or obligations of , or guaranteed by any financial institution , and involve investment risks including possible loss of principal and fluctuation in value .
Securities offered by Ameriprise Financial Services , LLC . Member FINRA and SIPC . © 2024 Ameriprise Financial , Inc . All rights reserved .
BETHEL PARK ❘ SUMMER 2024 13