Marc S. Pelletier, P.C., CPA's

 

666 Main Street, PO Box 326, Southington, CT 06489

 

Phone: 860-620-5500

January 2024

Stay On The Comfortable Retirement Track

Family couple saving money. Man and woman inserting cash into glass jar. Vector illustration for finance, deposit, economy, investment, banking, concept

There’s no better time than the beginning of a new year to review your retirement plan and, if possible, increase your contribution to the maximum allowed, if possible.


PRIORITIZE PLANS
Start by maximizing contributions to your business’s 401(k) or other company retirement savings plan.


Next up: IRA contributions, if you’re eligible. Start with traditional tax-deferred contributions. Then contribute to a Roth IRA. Mind income limits for IRA participation.


Consider a regular taxable brokerage account once you’ve exhausted tax-advantaged retirement accounts. You’ll have the flexibility to use those retirement funds whenever and however you choose.


CATCH-UP CONTRIBUTIONS
If you’re 50 or older, make catch-up contributions, if possible. An additional incentive to make maximum tax-deferred catch-up contributions to 401(k) Roth accounts in 2024 and 2025: The IRS delayed the SECURE 2.0 Act provision that prevents individuals earning over $145,000 from making pre-tax catch-up contributions to Roth 401(k) accounts until 2026.


This reprieve also gives you, as an employer, more time to implement the Roth 401(k) catch-up change and inform employees about this upcoming change.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.