Don’t delay to make contributions to your Traditional IRA or Roth IRA, Health Savings Account (HSA), and 401k! Add me on Instagram: michellemarki
If you max out these retirement accounts, you can make the most of compounding your investments and retire fabulously one day!
Since it’s never too early to start saving and investing for retirement, I feel strongly passionate about maximizing my retirement investments and helping my friends and family to do the same. So I hope the detailed information I put together will be helpful to your retirement investing education!
I love Roth IRAs the most because you are not forced to take a required minimum distribution (RMD) from them, unlike a Traditional IRA, pre-tax 401k, and Roth 401k.
The 2023 annual contribution limits for either Roth IRA or Traditional IRA are: $6,500 if under 50 or up to $7,500 if over 50.
The 2024 annual contribution limits for either Roth IRA or Traditional IRA are: $7,000 if under 50 or up to $8,000 if over 50.
In this video, I answer what is MAGI (Modified Adjusted Gross Income) and how might it affect your plans to contribute to a Roth IRA and/or Traditional IRA? MAGI is your Adjusted Gross Income (AGI) plus your tax-exempt interest income and specific deductions.
A Health Savings Account (HSA) is the best of all worlds because it is triple tax-advantaged, where you get to do tax-free: 1) contributions, 2) qualified medical expense withdrawals, & 3) investment earnings growth!
HSA requires a High Deductible Health Plan with minimum Deductibles in 2024 of Self: $1,600 and Family $3,200. If you have that, in 2024 you can contribute as Self: $4,150 and Family: $8,300. If you or your spouse are over 55, there are also catch-up contributions of $1,000 you (in self HSA) or each spouse (in family but separate HSAs) can make.
A 401k is often an employer-sponsored or workplace defined contribution plan, and in 2024 some plans allow for a total maximum contribution in 2023 of up to $69,000 if under 50 or $76,500 if over 50. The 2024 the elective contribution annual limits are $23,000 if under 50, and up to $30,500 if over 50.
Your employer may or may not choose to match your contributions to the 401k plan.
If you max out your retirement contributions in 2024 across the Roth IRA ($7,000), HSA ($4,150), and 401k ($23,000) that is already $34,150 you could be socking away toward retirement if you’re under 50!
You could be putting away more if you’re over 50 or 55 across these accounts depending on if you have an individual or family HSA in addition to doing catch-up contributions.
So go out and save for retirement because millions of dollars are waiting for you to compound them!
If you’re interested in learning how to take control of your finances and start becoming an investor like Warren Buffett, check out my free PDF guide.
I look forward to making more investor friends!
Add me on Instagram: michellemarki