Despite what many United States citizens think, the Social Security retirement plan is not the only one out there. Likewise we have the 401(k) and IRA that are of great help to United States citizens who are planning for their golden years.
Having one of these pension plans can mean having a large sum of money after working in our active years. Choosing IRAs or 401(k)s is totally optional, but sometimes highly recommended, as it could grant us more money in retirement.
While it’s true that we can just cash a Social Security check, having these pension plans during our golden years gives extra peace of mind. Likewise, many opt to bet everything on this pensioner’s plan and forget about Social Security for a bit.
Still, starting next year 2024 the rules for these pension plans will change a bit. We will get an increase in the limits for being able to put money into the IRA or 401(k), something that will have a positive impact on our own future.
WHAT WILL THE NEW 401(K) AND IRA LIMITS BE IN 2024?
Starting next year 2024 we will see an increase in the income limit for 401(k) and IRA. This limit doesn’t change every year, so it’s good to keep this in mind, as it could prove beneficial in the amount it will change for next year.
The more money we put into these pension plans the more money we will get in the future. Although it is really a month-to-month sacrifice, at the end of our life, in the golden years, we will have a better retirement.
The new limits on these two retirement plans are:
- IRA: $7,000.
- 401(k): $23,000.
So if you have one of these plans you already know that there will be an increase in the next year in reference to the maximum contribution. This is undoubtedly good news, as it will give millions of Americans the opportunity to have a better retirement after so many years of work.
Regardless of our retirement plan, whether it is a 401(k) or IRA or Social Security itself, we must keep in mind that we must pay the taxes coming from our benefits. So do not forget to make your Tax Return including all these contributions in order to comply with the established.