Make sure to update your financial plan for 2024. Here are some important updates that will affect how much you save, invest, and the taxes that you may have to pay.
How much can you contribute to your 401(k)?
Employee annual contribution limit: $23,000
Age 50+ catch-up contribution limit: $7,500
Total combined employee & employer limit: $69,000
What if you have a SIMPLE IRA?
Employee annual contribution limit: $16,000
Age 50+ catch-up contribution limit: $3,500
What are the 2024 limits for IRAs?
Under age 50: $7,000
Over age 50: $8,000
If you have a company retirement plan, can you make a deductible IRA contribution? That depends on your income. Your ability to deduct contributions is phased out over certain limits. Here are the income limits:
For single taxpayers covered by a company retirement plan, the phaseout range is $77,000 to $87,000.
For married couples filing jointly, where the spouse making the IRA contribution is covered by a company retirement plan, the phaseout range is $123,000 to $143,000.
When contribute to an IRA and you are not covered by a company retirement plan, but you are married to someone who is covered, the deduction will be phased out if the couple’s income is $230,000 to $240,000 for 2024.
Can you make a Roth IRA contribution? That depends on income as well. Here is chart that explains:
*Married (filing separately) can use the limits for single individuals if they have not lived with their spouse in the past year.
Other important numbers to know about:
HSA max deductible contributions:
Individuals: $4,150
Families: $8,000
55+: Additional $1,000
How much can you earn if you are receiving Social Security Benefits without being penalized?
Under your Full Retirement Age (FRA): $22,320
During your FRA year: $59,520
After your FRA: No limit
Centered Financial, LLC is a registered investment adviser offering advisory services in the State of California, Utah, Texas and in other jurisdictions where exempted. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. There is no assurance that the techniques, strategies, or investments discussed are suitable for all investors or will yield positive outcomes. To determine which strategies or investment(s) may be appropriate for you, consult your financial adviser prior to investing. Any discussion of strategies related to tax or legal planning is general and is not intended as tax or legal advice. Please consult appropriate tax and legal professionals for recommendations pertaining to your specific situation.