The pension plans in the United States are very different from each other and each one is totally individual. There are different pension plans and the IRS takes into account all of them, so we must pay taxes in case we have either the 401(k) or the IRA.
And not only that, but when it comes to making these pension plans the IRS puts annual income limits. Undoubtedly, it is not an easy task to be able to make a good pension plan for the future, but it can be worth the effort.
In this regard, starting next year 2024 we will have some changes that will be very beneficial for Americans who are thinking about starting a 401(k) or Roth IRA pension plan. These changes will remain in place for the rest of time and we may even see increases in the future.
If you have already started your pension plan the IRS will allow you to make these changes without any problems. At the end of the day, the final decision on how much money we put into each pension plan is totally individual, so it is a decision we must make for ourselves.
TAX AND IRS CHANGES FOR 2024
The two main changes we will see made by the IRS and next year’s Tax Return are related to the 401(k) and IRA, as we have already discussed. These types of retirement plans are quite a relief for beneficiaries who know they won’t have a nice Social Security check.
And depending on how we approach our situation, our retirement payment from the Social Security Administration may or may not be enough. So it’s better to secure a better retirement by making use of a 401(k) or IRA.
Starting next year, you will be able to put more money into these pensioner plans. To be exact, these are the new limits:
- 401(k): $23,000.
- IRA: $7,000.
Those Americans who already have the plan will have seen the increase and those who are starting to create this new plan already know what is the limit imposed by the IRS to be able to contribute to these two pension plans. If you were thinking about getting one of these plans, it is possible that 2024 is one of the best years to start.