12/2023
As the calendar turns to the New Year, taxpayers can anticipate a series of changes in the IRS landscape, ushering in a fresh set of regulations and provisions that will impact both individuals and businesses alike. Here are a few important changes to know ahead of 2024:
Retirement Plan Limits
| 2024 Limits | 2023 Limits | |
| 401(k)/403(b)/457(b) Elective Deferrals | $23,000 | $22,500 |
| Traditional and Roth IRA | $7,000 | $6,500 |
| Catch-Up Contribution (plans other than SIMPLE plans) | $7,500 (no change) | $7,500 |
| SIMPLE Plan Employee Deferrals | $16,000 | $15,500 |
| SIMPLE Plan Catch-Up Contributions | $3,500 (no change) | $3,500 |
| Plan Max. Annual Contribution – Defined Contribution Plans | $69,000 | $66,000 |
| Maximum Annual Benefit – Defined Benefit Plans | $275,000 | $265,000 |
| Compensation Limit under Section 401(a)(17) | $345,000 | $330,000 |
Health Savings Account Limits
| 2024 Limits | 2023 Limits | |
| HSA Self-Only Coverage | $4,150 | $3,850 |
| HSA Family Coverage | $8,300 | $7,750 |
| HSA Catch-Up Contributions (Age 55+) | $1,000 (no change) | $1,000 |
Standard Deductions*
| 2024 Limits | 2023 Limits | |
| Single | $14,600 | $13,850 |
| Married Filing Jointly | $29,200 | $27,700 |
| Head of Household | $21,900 | $20,800 |
Other changes for 2024:
- In addition the changes mentioned above, 2024 will bring revisions to the tax brackets, exemptions and credits, and limitations.
- A 3.2% cost-of-living adjustment (COLA) will be applied for Social Security retirement and disability beneficiaries.
- The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600.
If you’re curious how the new changes will affect your bottom line, we are here to talk about your plan. As always, we appreciate the opportunity to be of service.
We wish you a joyful and fulfilling New Year!
Sources:
https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024
https://www.irs.gov/newsroom/401k-limit-increases-to-23000-for-2024-ira-limit-rises-to-7000#:~:text=WASHINGTON%20%E2%80%94%20The%20Internal%20Revenue%20Service,up%20from%20%2422%2C500%20for%202023.
https://www.irs.gov/pub/irs-drop/rp-23-34.pdf
https://www.ssa.gov/cola/
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