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  • Helen Raleigh

What's New in Retirement Related Rules for 2024?

A new year brings Americans some new rules related to retirement planning.

For the 2024 tax year, if you are younger than 50, the standard contribution to an IRA (either traditional or Roth) has increased to $7,000. If you're 50 or older, you can make a catch-up contribution of $1,000 in addition to the standard $7,000 contribution to an IRA.

Older workers hoping for greater catch-up contributions to a 401(k) must wait until January 1, 2025, when catch-up limits will jump to a minimum of $10,000 annually or 50% higher than the catch-up amount applicable that year, but only for individuals ages 60 through 63. That amount will also be indexed for inflation. In 2024, individuals can contribute $23,000 to a workplace retirement plan with a catch-up contribution of $7,500 for employees aged 50 and over.

Starting in 2024, you don't have to take required minimum distributions (RMDs) from a workplace Roth plan if you reach RMD age in 2024 or later, which can potentially give your savings there more time to continue growing, as they would in a non-workplace Roth account. Assuming the 5-year aging rule has been met, and you're 59½ and older, withdrawals are tax-free when made. Please note that you may still owe an RMD by April 1, 2024, if you reached RMD age last year and have not yet taken your first RMD.

If you'd like to have a discussion about retirement planning, please give us a call or send us an email. We'd love to help you.

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