It's always a good time to plan for your financial future. As the upcoming new year approaches, it provides a good reason to consider the new contribution limits for retirement plans and health savings accounts (HSAs) in 2024.
Retirement Plan Contributions
The IRS recently announced that beginning in 2024, taxpayers will be allowed to contribute an additional $500 into their 401(k), 403(b) and most 457 plans. The 2024 contribution limit for these retirement plans will increase from the current level of $22,500 to $23,000.
Individuals age 50 and above are also eligible for catch-up contributions to their 401(k), 403(b) and most 457 plans. This means that these individuals can contribute above the $23,000 limit. The 2024 catch-up contribution limit will remain $7,500. In total, employees age 50 and above can contribute up to $30,500 in these retirement plans!
The limits for IRA/Roth-IRA contributions in 2024 will increase by $500 from $6,500 to $7,000. The IRA /Roth IRA catch-up contributions for individuals age 50 and above will remain $1,000. In total, employees age 50 and above can contribute up to $8,000 in their IRAs/Roth-IRAs.
Additionally, recent legislation has also made changes to HSAs contribution limits in 2024. Below are several of the important highlights to note.
Higher Health Savings Account (HSA) Limits In 2024
Almost anyone enrolled in a high deductible health plan that is HSA-qualified can set-up an HSA and benefit from the tax advantage. HSAs are an increasingly popular tax-favored benefit for workers and their families.
While there are many pages to the tax code, these are some of the ways that you and your family can benefit in 2024 to potentially reduce your tax bill. We are more than happy to collaborate with you and your tax advisor on planning strategies for 2024.
If you have questions about your specific financial planning or investment strategy needs, we welcome you to Contact Us to set up time to discuss further.
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.