In this video we talk about retirement account contribution amount changes for 2024.
But before we get into it, we are financial planners in Morristown, New Jersey. Although nothing in this article may be interpreted as tax or legal advice (ask your CPA or legal advisor for such guidance), we’ve written other blogs on financial planning, investments, and retirement that may be useful to you:
Is the life insurance provided by my employer enough?
Our easy, clear take on the question of if Social Security increases with inflation
End of year financial planning
What to do When Your Social Security Benefits Are Reduced
I’m invested in a 2030 target date fund – help!
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And now let’s get into it!
Retirement account contributions are a-changing in 2024!
As inflation rises year after year, contribution limits go up. If you are making annual contributions to IRAs, 401ks, etc., the beginning of the year is a good time to look at what you are doing and figure out if you could use more tax deductions.
- If you could use more tax deductions due to higher income, you can get that by putting more money into the retirement accounts. It’s not too late. You can contribute up to the tax filing deadline in mid-April in some cases.
- If your taxable income is going to be lower in 2024, you could use it as an opportunity for a Roth Conversion, or adding new contributions into Roth Accounts (Roth IRA, Roth 401k).
It’s a great idea to look back, see what you could do for 2023 and also look ahead to what could make sense in terms of how much you contribute to your retirement accounts in 2024. This document reveals the Important Numbers regarding tax rates, contribution limits, and RMD factors. If you have questions about how these numbers may apply to you, it may be a good idea to consult with a financial advisor.
Help for those retiring in 2024 and beyond
We are financial advisors in Morristown, NJ serving the local community and beyond. If you have questions about your financial plan, retiring in New Jersey, affording to live there, or (like us) are just plain old Bruce Springsteen fans, reach out and send us a message.