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A Different Degree of Wealth

Maximizing Retirement Contributions Before Year-End

As 2024 comes to an end, now is the time to plan for the year ahead. Understanding the upcoming changes to the IRS contribution limits in 2025 can help you make informed decisions. Additionally, strategies like delaying retirement may allow you to maximize Social Security benefits and extend investment growth.

Retirement Account Contribution Limits for 2024

The IRS has set the following contribution limits for retirement accounts in 2024:

401(k), 403(b), and most 457 Plans
- Contribution limit: $23,000.
- Catch-up contributions (for those aged 50 and older): $7,500, for a total of $30,500.
Traditional and Roth IRAs
- Contribution limit: $7,000.
- Catch-up contributions (for those aged 50 and older): $1,000, for a total of $8,000.
Simple IRA
- Contribution limit: $16,000.
- Catch-up contributions (for those aged 50 and older): $3,500, for a total of $19,500.

Taking full advantage of these limits before year-end may reduce your taxable income and boost your retirement savings.

Looking Ahead to 2025

It’s essential to plan for maximizing your retirement contributions in the upcoming year. The IRS has announced the following changes to contribution limits for 2025:

401(k), 403(b), and most 457 Plans
- Contribution limit: $23,500, up $500 from 2024.
- Catch-up contributions (for those aged 50 and older): Remains at $7,500, totaling $31,000.
- Special catch-up contributions for ages 60-63: $11,250, as per the SECURE 2.0 Act, totaling $34,750.
Traditional and Roth IRAs
- Contribution limit: Remains at $7,000.
- Catch-up contributions (for those aged 50 and older): Remains at $1,000, totaling $8,000.

To optimize your retirement savings:

Maximize 2024 Contributions
- Ensure you’ve contributed up to the 2024 limits to reduce taxable income and enhance your retirement fund.
Plan for 2025
- Adjust your savings strategy to meet the new limits, taking advantage of increased contribution opportunities.
Utilize Catch-Up Contributions
- If you’re 50 or older, make full use of catch-up contributions to boost your retirement savings.
Give Us a Call
- Seek professional advice to integrate these contributions into a comprehensive financial plan tailored to your goals.

Staying informed about these changes and adjusting your savings plan accordingly can significantly impact your financial security in retirement.

How We Can Help

Working with us is essential for navigating year-end contributions and planning for 2025. We can assist you in:

Optimizing Contributions
- We’ll ensure you’re maximizing your 401(k), IRA, and other contributions and help you prepare for any limit adjustments in 2025.
Tax Strategy Alignment
- We can develop strategies to reduce your taxable income and to take advantage of deductions. For example, in Wealth on Purpose, Ballentine explains that having a mix of non-IRA, Roth IRA, and Traditional IRA funds can help you remain in a lower tax bracket, while reducing the impact of taxes on your Social Security benefits.
Portfolio Adjustments
- We’ll review your investments to better align with your retirement timeline and risk tolerance.
Social Security Planning
- We can help you calculate the financial impact of delaying Social Security and determine the best time to begin receiving benefits.
Healthcare Strategy
- For those nearing retirement, we’ll help evaluate employer-sponsored benefits and Medicare options to ensure a seamless transition.

Personal Considerations

While the financial benefits of maximizing contributions and delaying retirement are significant, always consider your specific circumstances. Unexpected health issues, job market challenges, or personal priorities like travel or spending time with loved ones may influence your decisions.

Final Thoughts

Maximizing your retirement contributions before the end of the year and preparing for changes in 2025 are key steps in building a secure financial future. Taking advantage of contribution limits, catch-up opportunities, and the benefits of delayed retirement can make a significant impact on your long-term savings.

Consulting with us can ensure you’re on track and fully leveraging these opportunities. Contact us today to discuss how we can help you prepare for a successful 2025 and beyond.

Sources located at the bottom of the article

Golf Tip of the Week

Michael Breed: The two things you need to escape the sand

Here’s your greenside sand lesson in two words: speed and bounce. Splashing a ball out of a bunker takes more power than you might think—that’s the speed part. And to use that speed effectively, the club has to slide through the sand without getting stuck—that’s the bounce. Focus on a few keys.

First, grip the handle more in your fingers than your palms. This will help you hinge your wrists on the backswing—notice I have a full wrist set by halfway back (above). I can use that lever to generate speed quickly.

Second, lower the handle at address, feeling more bend in your wrists. When your hands are low, the heel of the club is more exposed, and that helps the clubhead glide through at a consistent depth. Setting the hands higher raises the heel and can cause the toe to dig, which stops the swing short.

Third, stay centered as you go back, and then swing to the left through impact. To maintain the club’s bounce, don’t let the shaft rotate counterclockwise as you swing through. Your trail hand should stay under the shaft, the knuckles on your lead hand pointing up. Use these keys to hit quality bunker shots.

Golf Tip adapted from golfdigest.comⁱ

Recipe of the Week

Pineapple Honey-Glazed Ham

Ingredients:

One 9- to 10-pound bone-in fully-cooked smoked ham (butt or shank half)

1 tablespoon whole cloves, optional

Two 20-ounce cans sliced pineapple

20 maraschino cherries

2 cups honey

2 cups light brown sugar

Directions:

Let the ham sit at room temperature for about 30 minutes.
Preheat the oven to 325 degrees F.
Trim off any skin from the ham. Use a sharp paring knife to score through the fat in a diagonal crosshatch pattern without cutting through to the meat. Push the cloves into the ham, if using, placing them at the intersections of the cuts. Put the ham, flat-side down, on a rack in a roasting pan.
Drain the pineapples, reserving the juice. Arrange the sliced pineapple all over the ham, securing with toothpicks. Add a maraschino cherry to the center of each pineapple slice and secure with a toothpick.
Pour 1/4 inch water in the bottom of the pan and tent the ham with foil.
Roast until an instant-read thermometer inserted in the thickest part of the ham (avoiding bone) registers 130 degrees F, about 2 hours 30 minutes (or about 15 minutes per pound).
Meanwhile, combine the honey, brown sugar and reserved pineapple juice in a large saucepan set over medium heat. Simmer, stirring occasionally, until thickened, syrupy and reduced to about 3 cups, 25 to 30 minutes. Set aside.
Increase the oven temperature to 425 degrees F.
Uncover the pan and carefully brush a third of the glaze all over the ham. If the water in the roasting pan has evaporated, add more. Bake the ham for 15 minutes more. Brush with another third of the glaze and bake for 15 minutes more. Brush the remaining glaze over the ham and cook until the glaze is shiny and the skin is dark golden brown and crispy, about 15 minutes more. Let rest for 15 minutes.

Recipe Tip adapted from foodnetwork.comⁱⁱ

Travel Tip of the Week

Hilton Honors Members Can Score Double the Points Right Now When Booking a Hotel Stay

The points promotion is running until Jan. 1 and is valid on stays through April 30.

Booking your next hotel stay just got more rewarding with an easy new promotion from Hilton Honors.

“The new double your stay promotion,” Hilton shared about the promotion on its website. “Reach your dream stay twice as fast.”

To qualify for double points on stays worldwide from Jan. 1 to April 30, travelers must register for the promotion first using their member number no later than Wednesday, Jan. 1. Upon enrolling, double points can be earned on previously booked reservations with Hilton, so long as the stay falls within the eligible travel window.

Not a Hilton Honors member yet? Joining takes just a few minutes, and you’ll be ready to start earning away across dozens of brands in its portfolio—from Hampton Inn and Conrad to exciting new additions like The Graduate Hotels.

Hilton Honors members typically earn 10 points per dollar on bookings made directly with the hotel chain at most brands, except for Tru and Home2 properties. With this new promotion, members can double their rewards, effectively earning 20 points per dollar on eligible reservations.

Frequent Hilton guests with elite status stand to benefit even more. For instance, top-tier Diamond members, who typically earn 20 points per dollar on stays, will now accumulate an impressive 30 points per dollar. Plus, using a Hilton credit card to pay for your stay adds even more bonus points on top of these enhanced rates. With nearly 8,000 eligible properties worldwide, this is easily one of the most rewarding promotions Hilton has ever offered.

Over the past year, Hilton has expanded its offerings to include unique, one-of-a-kind stays where members can earn and redeem points. National park lovers will appreciate AutoCamp, featuring luxury Airstreams and glamping accommodations, while the addition of Small Luxury Hotels of the World opens the door to bespoke stays at boutique-style properties worldwide.

Travel Tip adapted from travelandleisure.comⁱⁱⁱ

Our mailing address is:

Ballentine Capital Advisors
15 Halton Green Way
Greenville, SC 29607

Sources:

Disclosure:

Ballentine Capital Advisors is a registered investment adviser. The advisory services of Ballentine Capital Advisors are not made available in any jurisdiction in which Ballentine Capital Advisors is not registered or is otherwise exempt from registration.

Please review Ballentine Capital Advisors Disclosure Brochure for a complete explanation of fees. Investing involves risks. Investments are not guaranteed and may lose value.

This material is prepared by Ballentine Capital Advisors for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation or any particular security, strategy, or investment product.

No representation is being made that any account will or is likely to achieve future profits or losses similar to those shown. You should not assume that investment decisions we make in the future will be profitable or equal the investment performance of the past. Past performance does not indicate future results.

Advisory services through Ballentine Capital Advisors, Inc.

ⁱhttps://www.golfdigest.com/story/michael-breed-sand-tips

ⁱⁱHttps://www.foodnetwork.com/recipes/food-network-kitchen/pineapple-honey-glazed-ham-7217000

ⁱⁱⁱhttps://www.travelandleisure.com/hilton-honors-double-points-promotion-2025-hotel-stays-8759632