Due for a Raise in 2024? Take Advantage of This Retirement Account Before That Happens.
It's always exciting when you're anticipating a salary increase, whether by a raise or a new job opportunity. However, one potential challenge that could come from it is becoming ineligible to contribute to a Roth IRA.
Roth IRAs are retirement accounts that allow you to contribute after-tax money and then take tax-free withdrawals in retirement. The latter is what makes them appealing. Growing your investments for years without taxes waiting for you in retirement can save you thousands.
Unfortunately, the IRS limits who can contribute to a Roth IRA by income. For 2024, the most you can make and contribute to a Roth IRA is $161,000 if you're single and $240,000 if you're married and filing jointly. If you anticipate crossing those thresholds in 2024 (or in the foreseeable future), you could benefit from using a Roth IRA before it's too late.
Source Fool.com
