You can stash away an extra $500 in most retirement savings plans in 2024.
If you're looking to max out your retirement savings, the contribution limits have been bumped up by $500 for most retirement savings plans in 2024,
For those that don't rely on an employer-sponsored plan, the contribution limit on individual retirement accounts will also increase by $500 in 2024, from $6,500 to $7,000.The amount you can contribute to a Roth IRA phases out based on your adjusted gross income: In 2024, that range will increase to between $146,000 and $161,000 for single individuals and heads of households, up from between $138,000 and $153,000 in 2023.
One advantage of 401s: they have much higher annual contribution limits than IRAs, although the investment choices tend to be more limited. While there are other differences between the accounts to consider, they're generally all good long-term investment accounts since they offer tax advantages and the contributions will grow and compound over time.