What to know about retirement savings in 2024: Local financial expert

Local financial expert talks ‘springing into retirement savings’

Springtime is a great time to clean up the spaces in the present but it may be a good time to think about your financial space in the future.

ALBUQUERQUE, N.M. — Spring is a great time to refresh your space in the present but it may be a great time to refresh your space in the future.

That means thinking about retirement. David Hicks, of Oakmont Advisory Group, offered some tips on things to know.

For one, there are higher contribution limits for IRAs and 401(k)s for 2024:

  • Under 50: $7,000 into IRA or Roth IRA
  • Over 50: $8,000 into IRA or Roth IRA

There are also new options for retirement plans. For example, if you work for a small business that doesn’t have one, there are Starter 401(k) plans for companies without plans. They streamline the cost and ease of administration for employers.

If your employer doesn’t have it, try asking about it.

Now, you can take money from your retirement savings. However, you shouldn’t do that because you may face a 10% early withdrawal fee, with some exceptions:

  • Domestic abuse
  • Emergency expenses
  • Terminal illness
  • Disaster relief

If you’re coming up on retirement, it can be hard to keep up with inflation. Here are some things to look at:

  • Review your budget
  • Explore income options
  • Understand health care costs

If you’re retiring, you’ll want to get some help to address cash flow so you don’t get in a bad financial spot.