Strategic IRA Planning for 2024 RFG University IRA Planning in Your Gap Years Rollover amounts are subject to the annual Roth contribution maximum, $7000 in 2024. So, it would take 5 years at $ 7,000 per If you are in your 60s, you may want to take advantage of your year to reach the full $35,000 limit, and these rollovers will count Gap years and do some IRA planning. The Gap years are between towards the Roth IRA contribution limit annually. The beneficiary your retirement age and when you start taking required must also have enough compensation, equal to the rollover minimum distributions from your IRA or other retirement plans. amount, to qualify. There are no maximum income limits for either These years can be a time of lower tax rates, so it may make owner or beneficiary.The same ordering rules apply as if rolled sense to take some distributions even if you don’t need the over from another Roth IRA. income. Roth Conversions can really make sense here, as well. This is a time of historically low tax rates, so consider a strategy to take advantage and reduce your taxes in the future. Increase in SIMPLE IRA Amounts Your contribution limits might have changed if you are still working 529 Plans to Roth IRA and have a SIMPLE IRA at your employer. If your employer has 25 or fewer employees, your limits have In 2024, the Secure Act 2.0 now allows rollovers of 529 Plans to increased by 10%. Your new limit is $17,600, and if you are over Roth IRAs. age 50, the catchup amount is $3850. A maximum lifetime limit of $35,000 per beneficiary can be If your employer has 26 to 100 employees, the extra 10% can be rolled over. Additionally, the Roth IRA must be in the name of elected, but only if they provide a 4% dollar-for-dollar match the 529 beneficiary, not the owner. instead of the customary 3% The 529 Plan must have been open for at least 15 years. The IRS Also, employers can make an additional contribution to employees has not clarified whether there is a new 15-year waiting period if who earn at least $5000 for the year. The contribution can be up to the 529 Plan was transferred to a new beneficiary. 10% of pay with a $5000 maximum. Amounts rolled over from a 529 cannot include any deferrals or For personalized guidance and answers to your IRA-related earnings made in the previous 5-year time period. questions, contact us today at 940-464-4104 to schedule an appointment or speak directly with your advisor.