Mastering Your Retirement Plan: Strategies, Limits, and Expert Advice for 2024

Employer-Sponsored Retirement Plans | 401k Plans

In 2024, the annual contribution limits for 401(k) plans, will be $23,000 for individuals under 50 years of age. Those aged 50 and older have the opportunity to make an additional catch-up contribution of up to $7,500, effectively increasing the total contribution limit to $30,500.

Individual Retirement Accounts (IRAs)

The annual contribution limit for (IRAs) in 2024 will be $7,000 for individuals under 50 years of age. Those aged 50 and older have the opportunity to make an additional catch-up contribution of up to $1,000, elevating the total contribution limit to $8,000.

To craft a robust retirement strategy, consider these fundamental steps:

Define Your Retirement Objectives

Articulate your envisioned retirement lifestyle and gauge the financial requirements necessary to sustain it. Deliberate on elements such as day-to-day expenditures, healthcare outlays, and the impact of inflation.

Assess and Optimize Your Contributions

Strive to maximize your contributions to retirement accounts, capitalizing on any employer matching programs if accessible. Endeavor to reach or exceed the annual maximum allowable contribution limits.

Create a Well-Balanced Investment Portfolio

Construct an investment portfolio that diversifies in accordance with your risk tolerance and investment horizon. Contemplate incorporating a variety of assets, including stocks, bonds, and other classes, to achieve a harmonious blend of risk management and growth potential.

Monitor and Fine-Tune

Consistently evaluate your retirement strategy alongside your financial advisor and make necessary adaptations. Periodically reevaluate your objectives, investment performance, and contribution amounts to ensure your trajectory remains on course.

Always Seek Expert Guidance

Explore the option of consulting one of our financial advisors who can offer tailored advice tailored to your unique circumstances and needs.

Keep in mind, these steps are general principles, and it's crucial to customize them to your individual financial situation and goals. Consult a qualified professional for personalized guidance.

2024 Contribution Limit Increases

Contribution

2023 Limit

2024 Limit

Change

401(k) / 403(b) Employee Contribution

$22,500

$23,000

$500

401(k) / 403(b) Catch-Up Contribution

$7,500

$7,500

$0

401(k) / 403(b) Total Contribution < 50

$66,000

$68,000

$2,000

401(k) / 403(b) Total Contribution 50+

$73,500

$75,500

$2000

457(b) Contribution

$22,500

$23,000

$500

Traditional IRA Contribution

$6,500

$7,000

$500

Traditional IRA Catch-Up Contribution

$1,000

$1,000

$0

Roth IRA Contribution

$6,500

$7,000

$500

Roth IRA Catch-Up Contribution

$1,000

$1,000

$0

SEP-IRA Contribution

$66,000

$69,000

$3,000

SIMPLE IRA / SIMPLE 401(k) Contribution

$15,500

$16,000

$500

HAS Contribution (single)

$3,850

$4,150

$300

HAS Contribution (family)

$7,750

$8,300

$650

Healthcare FSA Contribution

$3,050

$3,200

$150