As we step into 2024, understanding the interplay between Social Security benefits and retirement planning is helpful when planning your future. This year brings updates that may influence retirement plans. Our team at StackStone Wealth is here to share some insights to help you better understand 2024’s Retirement Landscape.
When planning for retirement, take some time to review the questions below:
- When do I plan to stop working?
- Do I need this extra income?
- Will I have to pay taxes on my income?
- How long will I live?
Cost-of-Living Adjustments in Social Security
For 2024, the Social Security Administration has announced a Cost-of-Living Adjustment (COLA). This increase reflects a response to inflation. Read more information about the latest cost-of-living changes from the IRS and Social Security Administration here.
Tax and Contribution Limits Changes
It's important to note the changes in tax brackets and retirement contribution limits for 2024. For instance, the elective deferral limit for 401(k), 403(b), 457 plans, and the Thrift Savings Plan has increased to $23,000. Additionally, the income phase-out ranges for Roth and traditional IRAs have also been adjusted. These changes offer opportunities for more strategic savings and investments.
The Role of a Financial Planner in Navigating Retirement
Deciding when to collect Social Security benefits is an important decision. The right age varies based on personal factors like health, life expectancy, and financial needs. Our teams in Dubuque, IA, Lake Geneva, WI, Marquette, MI, and Rockford, IL can help you explore these factors, considering varying rates, social security income, and other income sources like IRA withdrawals. With regular meetings, our experienced team can assist in estimating your retirement expenses and income, including understanding the benefits of different retirement accounts like 401(k)s and Roth IRAs. By collaborating with the StackStone Wealth team, you can optimize your Social Security benefits, whether you start collecting at age 62, wait until full retirement age, or delay up to age 70 for increased benefits. Read more about Social Security here.
Planning Ahead for 2024
If retirement is on the horizon, then it may be a good time to connect. We can help you take the right steps to explore your financial future. For more information, please email us at StackStoneWealth@ampf.com.
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