3 Key 401(k) Perks You Must Utilize to Maximize Tax Savings and Retirement Success in 2024

401(k) Perks You Don't Want to Miss in 2024

You still have time to tap into these 401(k) benefits if you get started now. Contributing to a retirement account might not be the most exciting item on your to-do list, but it can lead to rewards both now and in the future. If you have access to a traditional 401(k), you can tap into perks that can score you a win on your tax return and get you one step closer to the retirement you've always dreamed of.

Enjoy higher contribution limits in 2024

• The contribution limits for a 401(k) surpass those of traditional and Roth individual retirement accounts (IRAs), and in 2024, you'll have a chance to unlock the biggest 401(k) contribution limits we've ever seen.
• You're allowed to contribute up to $23,000 to a 401(k) if you are 49 or younger in 2024. However, if you're older, your contribution cap jumps to $30,500 for the year.
• Your 401(k) contribution is automatically deducted from your income before your paycheck hits your checking account.

Qualify for an employer match

• Your employer may decide to chip in and help you save for your retirement by matching some or all of your 401(k) contributions. This is known as 401(k) matching.
• More than 8 out of 10 employees with 401(k)s at Fidelity received some type of matching contribution in 2023.

Secure tax benefits for 2024

• Beefing up your retirement savings may be one reason to contribute to a 401(k), but if you're looking for ways to trim your taxable income, contributing to a 401(k) can also help you out.
• Time is ticking away, but there's still an opportunity to claim these 401(k) perks for 2024. Start by determining your contribution goals and looking into your employer's match.