You STILL HAVE TIME to make those 2024 Retirement Contributions!!
But time is running out…
2024 Key Contribution Limits & Deadlines:
1. IRA (Traditional and Roth)
- Contribution limit: $7,000 for individuals under 50.
- Catch-up contribution: $1,000 for individuals 50 and older.
- Total potential contribution: $8,000 if you’re 50 or older.
Note: These contributions are subject to income and other limitations. Please consult with your OnPoint tax advisor to see if you qualify for these contributions.
Deadline: Contributions can be made until April 15, 2025 (the tax filing deadline for 2024). This includes contributions to both Traditional and Roth IRAs.
2. SEP IRA (for Self-Employed Individuals)
- Contribution limit: The lesser of 25% of your net profit & loss or a maximum of $69,000 for 2024.
Deadline: Contributions to a SEP IRA must be made by your tax filing deadline, including extensions, which would be October 15, 2025 if you file for an extension.
3. Solo 401(k)
- Employee contribution: $23,000 for individuals under 50.
- Catch-up contribution: $7,500 for individuals 50 and older.
- Employer contribution: Up to 25% of your compensation, with a total limit of $69,000 (or $76,500 if you’re 50 or older). This limit includes contributions from both the employee and employer.
Deadline: Employee deferrals must be made by December 31, 2024. However, employer contributions can be made until the tax filing deadline, including extensions, which is October 15, 2025 if you file for an extension.
General Tips for Retirement Contributions:
- Employer contributions (for 401(k) and SEP IRAs) typically need to be made by December 31 to count for that year.
- IRA and Solo 401(k) employee contributions can be made up until April 15 of the following year.
- Catch-up contributions apply to those 50 and older for certain accounts (like 401(k)s and IRAs), so be sure to take advantage of this if you qualify.
Make sure to plan ahead and make your contributions before the deadlines to maximize your retirement savings and tax benefits!