Today’s question is all about retirement plan changes now that we’re into the 2024 tax year.

IRA and Roth IRA Contribution Limits

Some of the biggest changes would be along the lines of contributions limits. These are limits that people are eligible to make into traditional IRAs or Roth IRAs. Most of the folks we’re working with are over 50 years old, so let’s just talk about those higher numbers.

The rule for 2023 was that you could contribute up to $7,500 into a traditional IRA or a Roth IRA. They increased that limit to $8,000 for 2024. If you’re looking to maximize your deductions or maximize your contributions into retirement accounts, take advantage of this new higher contribution limit that we’re now allowed to make.

401(k) Contribution Limits

The other thing to keep in mind while they also increase the IRA limits, they also increased the 401(k) or retirement planning limits. Now, if you’re over 50 years old, you can put $30,500 into that workplace plan, whether it’s a 403(b) or 401(k) or other retirement accounts like a 457 for some Municipal Employees.

So, when it comes to the biggest changes for the 2024 retirement planning year, it’s the increased limits as far as 401(k) and IRA contributions.