Jan 17, 2024 2024 Key Financial Changes

  • Social Security recipients are getting a 3.2% increase in their 2024 benefits.
  • The Medicare Part B premium is increasing from $164.90 to $174.70 per month.
  • The annual exclusion for gifts increases to $18,000 from $17,000 per year per individual.
  • The limitation on deferrals for 401(k), 403(b), and most 457 plans is increased to $23,000 for 2024, up from $22,500 in 2023
    • The catch-up for those over age 50 remained at $7,500, so if you are maxing out your plan and over age 50, you can contribute $30,500 in 2024
    • If you are maxing out your retirement plan, this is a good time to make sure the percentage you are contributing to your plan will max it by 2024 year-end.
  • IRA and Roth IRA Contribution limit increased to $7,000 per individual plus the $1,000 catch-up for those over age 50
  • Simple IRA Contributions increase from $15,500 to $16,000.
    • The catch-up contribution for those over age 50 remains at $3,500
  • HSA Contribution limit is increasing to $4,150 from $3,850 for an individual and to $8,300 from $7,750 for a family.
  • The IRS made other inflation adjustments to tax brackets, standard deductions, and other thresholds. You can find the details here: https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024

 

PDF of 2024 Key Financial Data

 

Sources:
https://www.irs.gov/newsroom/401k-limit-increases-to-23000-for-2024-ira-limit-rises-to-7000

 

Disclosure:
Leonard Rickey Investment Advisors is not a Tax Firm. Please review with your tax professional prior to implementing changes.

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Important Disclosures

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