A Comprehensive Guide to 2024 Retirement Account Changes by The Romine Group

Today, we’re delving into some significant changes coming in 2024 for retirement accounts, brought to you by The Romine Group, a leading CPA firm. In this blog post, we’ll unravel the key modifications affecting 401(k)s, 403(b)s, 457 plans, the Federal Thrift Savings Plan, IRAs, and more. Understanding these changes is essential for maximizing your retirement savings, and The Romine Group is here to guide you through the details.

Changes in Annual Contribution Limits:

• The Romine Group starts by shedding light on the updated annual contribution limits for various retirement accounts:

401(k), 403(b), 457 Plans, and Federal Thrift Savings Plan:

• The annual contribution limit is increasing from $22,500 to $23,000. For those over 50, an additional catch-up contribution of $7,500 is allowed.

IRAs:

• IRA contributions are rising from $6,500 to $7,000. The catch-up provision for individuals over 50 remains at $1,000 and will be indexed for inflation in the future.

Changes Introduced by the Secure 2.0 Act:

• The Romine Group highlights specific changes introduced by the Secure 2.0 Act of 2022, set to take effect in 2024:

Employer Matching Contributions for Student Loan Repayments:

• Employers can now make matching contributions that align with employees’ student loan repayments, providing a flexible approach to retirement saving.

Exception to Early Withdrawal Penalty for Family Emergencies:

• An exception to the early withdrawal penalty has been introduced for family emergencies, allowing for a one-time withdrawal of up to $1,000 in a year.

Non-Elective 10% Contribution to Simple IRA:

• Employers have the option to make a non-elective 10% contribution to a Simple IRA, not to exceed $5,000.

Starter 401(k) Plans for Those Without Employer Retirement Plans:

• Individuals without an employer-sponsored retirement plan can now set up a Starter 401(k) plan, providing more options for retirement savings.

As we step into 2024, the landscape of retirement savings is evolving, and The Romine Group has provided a comprehensive overview of the changes ahead. Whether you’re planning for your 401(k), exploring IRA options, or considering the latest modifications introduced by the Secure 2.0 Act, staying informed is the key to making the most of your retirement journey.

If you have questions or need guidance on navigating these changes, don’t hesitate to reach out. Your financial future awaits, and with the right knowledge, you can confidently march toward a secure and fulfilling retirement.

Remember, as The Romine Group wisely reminds us: “There are only two things certain in life—death and taxes, and we do taxes.”