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Strengthen Your Financial Core in 2024

Great expectations tend to come with the start of a new year. You have seen plenty of headlines about setting goals and tracking habits. The next 12 months are in front of you. You might look at the new calendar with great optimism, great anxiety, or maybe a bit of both.

While you set physical, emotional, and professional goals, don’t forget about financial goals.

A new year brings new opportunities. As you consider where you are financially and where you’re going, you should regularly confirm you’re taking advantage of the tools available to you. The IRS has increased limits for various savings tools. In calendar year 2024, you can contribute up to $23,000 to your employer 401(k) or 403(b). If you are 50 or older, you can add another $7,500 (bringing your total 2024 contribution to $30,500). Not in a position to put that much away? That’s OK. Saving at a level that works for you is key. If your employer offers to match your contribution, it benefits you to take advantage of that match.

If you have a traditional IRA or Roth IRA, you can contribute up to $7,000 to it in 2024. If you are 50 or older, you can add $1,000 to that (bringing your total contribution to $8,000). However, not everyone is eligible to contribute to a Roth IRA. If your income exceeds a certain limit, you may not be able to add funds to your Roth IRA. Consult with your tax advisor to confirm.

Speaking of Roth savings options, now is a good time to check if your employer retirement plan offers a Roth option. Many 401(k) plans allow employees, regardless of income, to contribute to a Roth 401(k). The dollars you contribute are taxable when they are transferred in to the plan. Those funds then grow tax-free and distribute tax-free in retirement. To reiterate, there is no income limit to make a contribution to a Roth 401(k).

Do you contribute to a health savings account? The IRS is allowing you to add a few extra dollars there as well. Individuals can contribute up to $4,150 in 2024; families can contribute up to $8,300.

Have you met the maximum for your savings options? There are other places to allow your money to grow on a tax-preferred basis. Annuities and whole life insurance can be structured a number of ways. Various planning pieces can provide flexibility and peace of mind in retirement. No matter what the calendar says, the time is always right to check in with your financial advisor and review your overall plan.

Cheers to taking steps toward financial fitness in 2024!