|
The IRS has just announced significant changes for 2024 that can help you save more, reduce your tax burden, and enhance your personal wealth. 1. Increased 401(k) Contribution Limits: Starting in 2024, most workers will have the opportunity to contribute up to $23,000 to their 401(k) and similar workplace retirement plans. This represents a $500 increase from the previous year. These higher limits mean you can potentially save more for your retirement while enjoying tax benefits. 2. Enhanced IRA Contributions: The maximum allowable contributions to individual retirement accounts (IRAs) are also seeing a boost. You can now contribute up to $7,000 in 2024, an increase of $500. If you're aged 50 or older, you have the option for additional "catch-up contributions" with limits of $1,000 for IRAs and $7,500 for 401(k)-type plans. 3. No Difference for Roth and Pretax Accounts: The contribution limits
apply equally to Roth and pretax 401(k) accounts and IRAs, giving you flexibility in choosing the retirement accounts that suit your financial goals. While these changes are technically in favor of those who consistently maximize their contributions, it's important to note that the number of individuals who do so is relatively low. Only about 15% of participants in 401(k) plans reached the legal contribution limit in 2022. However, with higher
thresholds in 2024, there's an opportunity for more individuals to take advantage of these limits. Additional Benefits for Charitable Giving: Certain elderly Americans can experience increased tax advantages by incorporating charitable giving strategies. In 2024, IRA holders can contribute up to $105,000 to a charity, and this amount will count toward their minimum required distributions from their retirement
accounts. This is up from the previous limit of $100,000. These changes offer you an excellent opportunity to reevaluate and update your automated finances to take full advantage of these benefits. By doing so, you can save more for your future, reduce your tax liability, and ultimately expand your
personal wealth. Remember that the IRS adjusts contribution limits based on factors such as changes in the cost of living (inflation). As inflation continues to affect various tax provisions, it's essential to stay informed about updates that could further impact your financial planning. In the coming weeks, we'll provide more detailed insights and tips on how to optimize your financial strategies in light of these changes. Stay tuned for our upcoming articles and resources. We encourage you to consult with a financial advisor to ensure your financial plans align with your goals and take full advantage of these new opportunities. Your financial future is important, and we're here to help you make the
most of it. Here's to your continued growth, both spiritually and financially. Warm regards,
|
