The Secret to Maxing Out Your 401(k) and IRA in 2024
Maxing out retirement accounts may not be the best move for everyone, but it's something I look forward to every year. Retirement accounts, such as a 401(k) and Roth IRA, can come with many benefits that can make your life easier now and during retirement.
For instance, pre-tax contributions to a 401(k) can lower your taxable income. If you earn $100,000 in 2024 and contribute $23,000 to your 401(k), your taxable income drops to $77,000. Also, if you earn that much this year, you can contribute to a Roth IRA and enjoy its benefits. Instead of getting an up-front tax deduction, you'll contribute after-tax dollars to a Roth IRA so you can receive tax-free income during retirement.
Setting retirement goals and achieving them every year makes a significant impact on your financial future and brings you closer to building a healthy nest egg. If you want to up your retirement savings game this year, here's a rundown of what you can do to make that possible.
Source Fool.com
