Different Types of Investment Accounts (2024 Update)

As we step into a new year, 2024 brings with it some significant changes to investment accounts, offering investors new opportunities and strategies to enhance their financial portfolios. In this blog post, we’ll explore the updates to contribution limits and rules for various investment accounts, as well as the exciting developments in 529 savings plans and the novel option to rollover funds into a Roth IRA.

IRA and 401(k) Contribution Limits:

One of the key considerations for investors in 2024 is the adjusted contribution limits for Individual Retirement Accounts (IRAs) and 401(k)s. The IRS has increased the annual contribution limits to accommodate the rising cost of living. For individuals under 50 years old, the IRA contribution limit has been raised to $7,500, while those over 50 can contribute an additional catch-up contribution of $1,000. Similarly, the 401(k) contribution limit has been bumped up to $21,000, with an extra $6,500 allowed for individuals aged 50 and above.

These higher limits provide investors with an enhanced opportunity to maximize their retirement savings, encouraging a more robust and secure financial future.

529 Savings Plan Overhaul

In a move aimed at supporting education savings, changes to 529 savings plans have been implemented. Investors can now contribute up to $15,000 annually per beneficiary without triggering the gift tax. Additionally, the definition of qualified expenses has been expanded to include not just higher education costs but also K-12 tuition fees, tutoring, and certain apprenticeship programs.

These adjustments make 529 plans more versatile and accessible, empowering families to proactively save for educational expenses throughout a child’s academic journey.

For 2024, the annual IRA contribution limit is $7,000, with an extra $1,000 for investors age 50 and older. There’s a lifetime cap of $35,000 for 529-to-Roth IRA rollovers, which means it would take five years of $7,000 conversions to reach the limit.

Plus, you can’t roll over the previous five years of 529 contributions and the beneficiary must have enough “earned income,” or wages from a job, to match each year’s conversion, similar to regular Roth IRA contributions

Generally, it’s better to keep the money growing in a 529 plan and contribute to a Roth IRA separately because you can change 529 plan beneficiaries, you always want to try to maximize those tax efficiencies


As we embark on a new year, investors have the opportunity to leverage the changes in contribution limits, rules, and rollover options to fortify their investment portfolios. By staying informed and adapting to these adjustments, individuals can navigate the ever-evolving financial landscape and make the most of the opportunities presented in 2024. Whether it’s maximizing retirement contributions, optimizing 529 savings plans, or exploring the new Roth IRA rollover option, proactive investors can position themselves for a more secure and prosperous financial future.

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