As part of your retirement planning for 2024, now is the time to review funding your retirement accounts. Recent cost-of-living calculations mean much higher contribution limits for this year. Plus, the higher income phaseouts for eligibility will make many more taxpayers eligible for fully-deductible contributions. So plan now to take full advantage of this tax benefit.

2024 retirement planning

Here are the annual contribution limits for some of the more popular retirement programs:

How to use

• Identify the type(s) of retirement savings plans you currently use.
• Note the annual savings limits of the plan to adjust your savings to take full advantage of the annual contributions. Remember, a missed year is a missed opportunity that does not return.
• If you are 50 years of age or older, add the catch-up amount to your potential savings total.
• Take note of the income limits within each plan type.
  • For traditional IRAs, if your income is below the noted threshold, then your taxable income is reduced by your contributions. The deductibility of your contributions is also limited if your spouse has access to a plan.
  • In the case of Roth IRAs, the income limits restrict who can participate in the plan.

Other ideas

If you have not already done so, also consider:

• Setting up new accounts for a spouse or dependent(s)
• Using this time as a chance to review the status of your retirement plan, including the beneficiaries
• Reviewing contributions to other tax-advantaged plans like Flexible Spending Accounts (health care and dependent care) as well as prepaid medical savings plans like Health Savings Accounts

Please contact our RRBB advisors if you have any questions about the most effective tax-saving tactics in light of the 2024 figures.