It looks like we had better ramp up our 401(k) and IRA contributions to the absolute max while we still can, folks.
That means a full $30,000 this year, and more if you’re 50 or older: The 401(k) maximum for 2024 is $23,000 and the IRA maximum is $7,000, and savers who are 50 or older can make additional contributions. It may also mean converting your traditional pretax IRA to a post-tax Roth IRA in order to maximize the after-tax amount in your shelters.
The reason? There is talk in policy circles of getting rid of these plans entirely — or at least ending the tax breaks, which pretty much amounts to the same thing. That would be a political shock and a financial earthquake, especially for the middle class.
