As we step into 2024, it’s essential to be in the know about financial changes affecting retirement planning. One key area to pay attention to is the adjustments to 401(k) maximum contributions. Let’s explore the significant updates for both employees and employers. 

Key Changes for 2024: 

• Employee Contribution Limits: The maximum employee contribution limit for 2024 has increased to $23,000 for those under 50. 
• Employer & Employee Combined: The total annual limit for combined employee and employer contributions has been raised to $69,000. 
• Catch-Up Contributions: Employees aged 50 and older are eligible for an additional $7,500 in catch-up contributions. 

 Visit the IRS website for an official list of 2024 changes.  

 Implications: 

• Increased Savings Opportunity: Employees can take advantage of higher contribution limits to boost their retirement savings significantly. 
• Tax Advantages: The new limits offer enhanced opportunities for tax savings through tax-deferred contributions. 

The 2024 adjustments to 401(k) maximum contributions provide a valuable opportunity for individuals and employers to enhance retirement planning strategies. Staying informed and leveraging these changes can pave the way for a more secure financial future. 

Want more information on retirement planning and 401(k) contributions? Reached out to a Wedbush financial advisor in your area, here.