Author: Tammy Doss
Let’s start with the BIG numbers! Super fun! Get Excited! Get motivated! It’s Your Party! Have a plan to save more even if it is just $25.00 a month. It all adds up! The end results will astonish you!
YOU are worth every penny!
Bellow are some ideas for ways you can save for your future this year, along with the max tax free contribution you can make to each type of account.
401 (K) Contributions
$23,000
Highlights of the changes for 2024 401(k), 403(b) and most 457 plans as well as 457 Plans. This is the limit for an individual in 2024 but read on.
Note: if you are over 50 an additional employee catch-up contribution of $7,500 can be contributed, to your 401(k) plan. YEAH!
Employers may match some or all of this! WOW, WOW, WOW!
(Do I have your attention now??)
The maximum contribution and employer match in 2024 can be up to $69,000!
Your contributions to a plan would be pre-tax and you will pay the tax later when you take the funds in retirement. This is important so you understand that in retirement your income may be less, and you would owe less in income taxes on the funds one withdraws for tax purposes.
TRADITIONAL IRA
$7,000-$8,000
The traditional IRA Contribution limit for 2024 is $7,000 for those under 50, and an additional $1,000 catch up contribution for those 50 and older.
This IRA contribution is made with (pre-tax dollars)
Roth IRA
$7,000-$8,000
The traditional IRA Contribution limit for 2024 is $7,000 for those under 50, and an additional $1,000 catch up contribution for those 50 and older.
This IRA contribution is made with post-tax dollars (after tax dollars)
Health Savings Account Contributions
$8,300 for family coverage or $4,150 for self-only coverage
You must be enrolled in an employer medical plan. Check with your employer if you may be eligible for a Health Savings Accounts under your current plan choice. You have the option to change plans that you are eligible for through your employer and that you qualify for based on your current employment status.
Federal Mileage Reimbursement – 2024
$.67 per mile
Keep track of your miles used for work. You will want to have a specific log of the trips and miles you traveled.
The 2024 reimbursement per mile has been increased from .65.5 cents per mile to .67 cents per mile. You will want to note this change especially if you drive a lot for work. If you don’t turn in your mileage to your employer, you will want to track it carefully and follow the IRS guidelines so you can deduct this from your personal taxes.
Best wishes for a great start to 2024. Put a few dollars away and you will never miss them. As that money grows… the money plus interest will come back to you later in life and you will be delighted.
Always consult your financial advisor for the best options and consult your best friends, partner family etc. You know yourself the best so see what options work best for you. The key is to put a little away now and it all adds up.
The Job Shop encourages financial growth for all. Happy 2024.