new year
There is always plenty of hoopla about the transition from one calendar year to the next. Out with the old in the with new. Make a fresh start. Resolve to do something better this go around. Welcome to 2024.
I must admit, I am not much of a New Year’s person. I am more of a new year’s person.
I can understand the importance of a clean break when we formally close one period of time and begin another. It is too late for most 2023 activities, except maybe an IRA, Roth IRA, SEP IRA, or 529 plan contribution (this one varies by state).
Now that the calendar has flipped, 2024 does bring some additional planning opportunities:
- 401(k) and 403(b) contributions limits rise to $23,000 (under age 50 at year-end) or $30,500 (at least age 50 by year-end).
- IRA and Roth IRA contribution limits rise to $7,000 (under age 50 at year-end) or $8,000 (at least age 50 at year-end).
- Your annual gift tax exclusion increases to $18,000.
- Up to $35,000 of unused 529 plan account balances may be rolled over to a Roth IRA for the 529 plan beneficiary if the 529 plan account has been open for 15 years (subject to annual contribution limits). The IRS has not released specific directions on how to legally do this yet.
- If you have an old employer retirement plan that is worth less than $7,000, your employer can force you out of the plan.
- You are no longer required to annual Required Minimum Distributions from Roth accounts in employer retirement plans.
It is prudent to understand how any rule changes that arbitrarily began on January 1 will impact your life in a new calendar year, but it is even more important to treat every day like a new year.
Every day is the beginning of your next spin around the sun. What goals do you have for you or your family this time around? What small steps can you take today to move closer to those goals?
Happy New Year to the calendar-centric who limit their celebrations to early January! Happy new year today and every day for those preferring unlimited celebrations!
Graphic Source: <a href=”https://www.vecteezy.com/free-vector/new-year-2024″>New Year 2024 Vectors by Vecteezy</a>
Quote of the week: Jim Rohn: “Discipline is the bridge between goals and accomplishments.”
