Maxed Out Your IRA? 3 Places You Can Still Save for Retirement in 2024

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There are still more than three months left in the year, so don’t miss out on these valuable opportunities to save more for retirement.

IRAs are one of the most popular options for retirement savings because they give you so much flexibility. You can choose how you want to invest your funds and even when you want to pay taxes on them. But they have a big drawback: You can only contribute up to $7,000 in 2024 ($8,000 if you’re over age 50), and that’s not enough for all workers.

If you’ve maxed out your IRA already and you want to set aside more money for retirement this year, you still have options. Here are three for you to consider.

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1. 401(k)

A 401(k) is a great alternative if you have access to one through an employer. It has a much higher contribution limit — $23,000 in 2024, or $30,500 for adults 50 and older. Together with an IRA, this should be plenty for most people. You may also have the opportunity to earn a matching contribution from your employer, which can help your savings grow more quickly.

But 401(k)s are more limiting in some ways than IRAs. First, you have fewer investment options. You typically must choose from a variety of mutual funds your employer chooses. Some companies also limit you to only a tax-deferred 401(k), which gives you a tax break now but requires you to pay taxes on your withdrawals later. However, an increasing number of companies are offering a Roth 401(k) option for those who prefer to pay taxes now to get tax-free retirement withdrawals later.

Finally, you can only make 401(k) contributions through paycheck deferrals. You must make all 401(k) contributions for 2024 by Dec. 31. This is different from IRAs, which allow you to make 2024 contributions up until the April 15, 2025, tax deadline.

2. Health savings account (HSA)

A health savings account (HSA) could be an option for you if you have a high-deductible health insurance plan. This is one with a deductible of $1,600 or more for an individual or $3,200 or more for a family in 2024.

Individuals who qualify can set aside up to $4,150 if they have an individual health insurance plan or $8,300 if they have a family plan. Adults 55 and older can add another $1,000 to these limits. Contributions reduce your taxable income and they’re tax-free when withdrawn for medical expenses at any age. You can also make non-medical withdrawals although you’ll pay income taxes on these, plus a 20% penalty if you’re under 65.

An HSA is a strong choice for those looking to earmark money for retirement healthcare expenses. However, if you plan to use the account this way, you probably want to avoid medical withdrawals prior to retirement. You also want to make sure you invest your HSA funds. Otherwise, they won’t grow very quickly.

3. Taxable brokerage account

Taxable brokerage accounts aren’t retirement accounts, and therein lies their strength and their weakness. Contributing to one of these accounts won’t earn you the same tax breaks as contributing to an IRA. However, if you hold your investments for a year or more before selling them, your earnings will be subject to long-term capital gains tax. That could save you a few dollars compared to paying the higher short-term capital gains tax rates.

The upside to using a taxable brokerage account is that there are virtually no contribution and withdrawal limits. You can invest as much money as you want whenever you want and withdraw it without the 10% early withdrawal penalty retirement accounts have while you’re under 59 1/2. Plus, you can invest your money however you want.

You can also spread your money between two or more of these three options if you’re eligible for them. Weigh the pros and cons of each and choose the ones that make the most sense for you right now. If you’d like, you can even start thinking about your strategy for 2025 so you’re ready to execute it once the new year arrives.