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.
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:
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.
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.
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.
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.
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.
|
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 |