Providing insights, trends and updates on employee benefits and executive compensation.
The IRS recently released the 2024 Cost-of-Living Adjustments (COLA) for contribution and compensation limits. Here are the highlights, effective January 1, 2024:
Jill plans long-range. She would like to have a large nest egg when she retires. Jill is 22 and elects to put $50 each paycheck (semi-monthly) into her employer’s 401(k) plan. Even if Jill stops saving at age 32, her retirement account will continue to grow, free of any tax.
Jack is 22 and prefers spending his money. He knows his retirement is a long way off, so he delays making contributions to the 401(k) plan. At age 32, Jack decides that it’s time to start saving $50 per paycheck, but now it’s ten years after Jill had started saving.
The stock market has been whipsawing, mostly down, mixed with a few up days. Inflation, gas prices, food prices - consumers have been cutting back purchases. Participants in 401(k), 403(b), and profit sharing plans with directed investment accounts, along with IRA’s, have been asking: are there alternatives to which I may direct investments?