One of the best advice is to contribute to your private retirement as the contribution is a tax deduction (lower taxable income in your w2) and then, it will be taxed at the distribution time in the case of traditional retirement plans. This is extremely relevant as social security payments are expected to be partial starting 2035 “… with the agency … projecting that recipients would lose 17% of their current benefits” per the CBS News article .
For 2024, the maximum 401k contribution is $23,000. Remember that if you are over 50, then, you can do an additional retirement contribution of $7,500.
How do you contribute?
- Does your employer have a 401k or 403b in place?
- Do you meet the eligibility requirements? tenure/length of employment? hours worked?
- Is there a matching in place? or profit sharing? Take advantage of any of these benefits.
How do you ensure you maximize the retirement contribution?
You can review your paystub comparing the current contribution to the retirement plan and the Year to Date (YTD) column to see if you are on track to reach the maximum contribution for 2024.
