We send this reminder near the end of each year in recent past… Last year we sent this early November… WAY too late in our opinion as we struggled to complete adjustments for some…. So this year we get the worm (Early Bird thing) AND this also is making its’ way into the Q 4 2024Newsletter!
So here is your official reminder, please reach out with any questions or needed calculation help…that is what we are here for!
Great time to review your contribution levels
Now is a good time for all of us to review our retirement contribution levels. If our intent is to max out your 401(k), or other retirement plan, take a peek and see if you’re on track to achieve this goal.
If you have any questions certainly shoot us your latest paycheck and we can do the calculations, but here are roughly where we should be on our contributions to the regular and catchup 401(k) levels.
The maximum for 401k and most other retirement plans are $23,000 this year with a $7,500 catch up kicker for those age 50 and older this year…
Ideally your year to date (YTD) contribution levels for your 401(k) regular withholding by yourself should be about $17-$18k in order to meet the $23k regular filing maximum by the end of the year and if our goal is to achieve the $30.5 K catchup for those 50 and older we should be at least at the $23 – $24K level today. Both of these should be our individual YTD withholding amounts. We know there are matching and employer contributions … but the rules are set for us as an individual. Catch ups are the usual problems, so make sure if you are 50 or turning 50 this year, your employer knows you want to do a catch up contribution!
Two quick reminders… if you have changed employers it is our job to keep up with the maximum amounts as mentioned here because our new employer will not know our prior contributions…
New plans should be wide open aggressive to take advantage of the contributions making up the corpus of the new account.
There are variances in certain situations, but the above covers the great majority of plans …. Reach out if you are in the middle for some reason!
This is your friendly reminder!
Reach out if Questions… We got you!
Have a Great “Retirement Run Rate” Reminder Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
