The 2024 401(k) catch-up contributions have not changed. However, other IRS updates may impact your retirement plan. EP Wealth can help you navigate these guidelines. Find an advisor near you.
What Are the 2024 401k Contribution Catch-Up Rules?
It’s helpful to note the maximum allowable contribution for your retirement plan in 2024. Although the Internal Revenue Service (IRS) increased the overall contribution limit for 401(k) plans from $22,500 to $23,000 in 2024, the catch-up contribution for individuals aged 50 and older remains unchanged at $7,500.
EP Wealth retirement planning advisors are here to help you navigate other changes that may impact your investment strategy for 2024 and for the years ahead.
The Importance of Catch-Up Contributions for Retirement Planning
Once you turn 50, you are eligible to contribute more money to your 401(k) plan every year through catch-up contributions. Even if you haven’t hit your 50th birthday, you can still make catch-up contributions during the calendar year that you turn 50.
These additional contributions can be a valuable way to help those who may have started planning for the future a bit later catch up as they move closer to retirement.
Catch-up contributions may come with a significant tax advantage. The tax deductions you claim on catch-up contributions can potentially save you a nice sum of money off your yearly tax bill. Income tax on 401(k) funds isn’t due until you withdraw that money from your account. And if you are in a lower tax bracket as a retiree, you will pay the lower rate on your 401(k) distributions.
Contact an EP Wealth Advisor for Custom Retirement Planning Solutions
If you’re wondering how your 401(k) fits into your larger retirement planning strategy for 2024, EP Wealth advisors are here to help. We work with you to understand your needs and goals at every stage of life—and build a plan around them.
We meet you where you are today and provide practical guidance to support your vision for retirement. To learn more about our services or to start planning for the year ahead, contact an EP Wealth advisor near you.
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