Page 12 - South Mississippi Living - January, 2024

COAST NOTE
FINANCIALLY
SAVVY TIPS FOR 2024
story by Cherie Ward
here’s a major change coming to retirement plans in 2024, and it’s a good thing if you’re trying to save and plan for your post-work future.
“This change will allow people to put a little
bit more money into their retirement plans which will save them money in taxes,” said Heidi Ardis, founder and CEO of Agape Wealth in Biloxi.
Ardis explained savers will be able to contribute as much as $23,000 in 2024 to a 401(k), up from $22,500 in 2023, which is an increase of $500. Those 50 and older will be able to add another $7,500 – the same catch-up contribution amount as 2023 – for a maximum contribution of $30,500.
The change also applies to other retirement saving plans such as 403(b) plans for public school employees and nonprofit organizations as well as the federal government’s Thrift Savings Plan.
Ardis said if you can’t afford to contribute the new maximum, start small, invest what you are comfortable with, and then try to increase the amount each year. “Even if it’s
not the full amount, you can still lower your taxes,” she said. “Especially once you hit a certain threshold.”
Another big tip Ardis has is to put money into tax-free retirement buckets such as an individual retirement account or indexed life insurance policies.
“Or any kind of tax-free savings just so that when you do start to pull money out you have some money that's also not taxable and we can control your taxes and retirement a little bit better,” she added.
Ardis highly recommends paying off high-interest debt as soon as possible. “Especially credit card debt so you’re not living above your means,” she added. “Trying to stay within a budget and paying off high-interest debt will help you save more money in the long run.”
She also warned to be mindful when making large purchases such as a house or vehicle. “We currently have high-interest rates along with hyperinflation, which is extremely rare,” she said. “So maybe just wait six months or even a year and see if things come back down.”
12 | January 2024
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