THIN(K) ABOUT YOUR 401(K) PLAN - 401(K) PLAN CONTRIBUTION LIMITS INCREASE FOR 2024

The IRS has announced an increase in the maximum amount an individual can save using a 401(k) retirement account.  In 2024, individuals will be able to save $23,000 up from $22,500 in 2023.  Those over age 50 will be able to save an additional $7,500 “catch-up contribution.”

If your plan has a matching component and profit sharing as additional funding sources, 2024 annual contribution limits from all sources including your savings will rise to $69,000 from $66,000 plus the catch-up contribution of $7,500 for those over 50 ($76,500 total).  Click here to view the IRS website that provides additional information.

401(k) plans allow employees to save for their retirement years by deferring a portion of their compensation into these tax advantaged investment accounts. Employees can watch their savings grow over the years without needing to pay taxes along the way, and these tax cost savings can add up over time. These accounts allow the compounding effect of growth to have a larger effect over time, increasing the ending balance employees will have in retirement.

And, now you can save even more money using this tax advantaged investment vehicle!

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For disclosures, please click here.