Start your 2024 retirement planning
As we step into the realm of 2024, it is paramount for every discerning investor and retirement planner to stay ahead of the latest developments in contribution limits. Let’s delve into the fundamental changes that will shape 457(b), 403(b), Thrift Savings Plans, and Individual Retirement Accounts (IRAs) in the upcoming year as part of the 2024 retirement planning.
457(b), 403(b), and Thrift Savings Plans
For employees enrolled in a 457(b) plan, 403(b) plan, or the federal Thrift Savings Plan, understanding the revised contribution limit is crucial. In 2024, the limit has seen a modest increase, reaching $23,000 from the $22,500 observed in 2023. This adjustment aims to empower participants to optimize their contributions, leveraging the tax benefits inherent in these plans as you fine-tune your 2024 retirement planning strategy.
Catch-Up Contributions
Those aged 50 and above can still take advantage of the catch-up contribution provision, with the limit staying at $7,500 in 2024. This provision allows older contributors to strengthen their retirement savings without facing additional tax burdens.
Total Contributions for Defined Contribution Plans
In the wider perspective of defined contribution plans, the total contribution ceiling has been elevated to $69,000 in 2024, a rise from $66,000 in 2023. This all-encompassing limit includes diverse retirement savings vehicles, underscoring the significance of a diversified investment portfolio in crafting a comprehensive retirement strategy.
Changes in IRAs From 2023 to 2024
For individuals making contributions to an IRA, the revised limit for 2024 is $7,000, an increase from $6,500 in the previous year. This adjustment provides an excellent opportunity for investors to elevate their retirement savings and fully capitalize on the expanded contribution limit.
For Additional Details
Read the IRS’ full announcement.
Learn More About 2024 Retirement Planning
The modest increases in contribution limits for 457(b), 403(b), Thrift Savings Plans, and IRAs present unique opportunities to fortify your retirement savings. Whether you’re capitalizing on catch-up contributions, optimizing strategies for defined contribution plans, or embracing the expanded limits for IRAs, 2024 offers a great deal in planning your retirement.
For more in-depth information and personalized guidance on retirement planning, check out the Retirement Plan Advisors website to learn more about retirement planning.
Contact
If you have any questions or comments about this retirement planning article or the Retirement Plan Advisors, please contact Matthew Martin, CFP, Certified Financial Planner:
- Phone: 248.767.3828
- Email: mmartin@retirementplanadvisors.com
Read previous Retirement Plan Advisors posts on POAM’s website.
Some information in this post was sourced from Fidelity. For additional information, please visit their website.
Download the PDF Guide: “2024 Retirement Plan Contribution Limits”
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