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Showing posts with the label irs2023

Millions Lose 401(k) Deduction as New IRS Changes are Detailed in Brief Video

Starting in 2024, those aged 50 and older will not be able to make a catch-up contribution to their 401K plan in the amount of $7,500. In 2023, the maximum allowed to a 401K plan is $22,500. If you are 50 and older, you can contribute an additional $7,500 - known as a catch-up. Remember, contributions made to a 401K reduce your wages which are subject to income tax. So this is the benefit that you’ll be missing. Instead, in 2024, those aged 50 and older can make a contribution of up to $7,500 to their Roth IRA. Remember, ROTH IRA accounts grow tax free and you can withdraw the money once you receach a certain age and don’t have to pay taxes on the original contribution or appreciation of those assets. #shorts #IRS #IRSchanges #retirementsavings #401k #financialplanning #retirementplanning #personalfinance #retirementgoals #investmenttips #financialfreedom #retirementstrategy #401kplan #savingsgoals #wealthmanagement #retirementadvice #financialgoals #moneymanagement