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2024 Key Financial Data

| November 25, 2023

Navigating the 2024 Tax Landscape 

As we approach the dawn of a new tax year, it's crucial to stay informed about the significant changes that will shape our financial landscape. The 2024 tax season brings with it more than 60 provisions, and here, we'll delve into some of the most critical alterations, focusing on tax brackets and retirement contribution limits.

Tax Bracket Inflation Adjustment: In an effort to keep pace with the ever-changing economic landscape, tax brackets for 2024 have undergone a 5.4% upward adjustment. This change, rooted in the Consumer Price Index, aims to align income taxes with the ebb and flow of consumer buying power.

Standard Deduction: For married couples filing jointly, the standard deduction has seen a notable increase, reaching $29,200—a $1,500 uptick from the previous year. Single filers also benefit, with their standard deduction rising by $750 to $14,600.

Individual Retirement Accounts (IRAs): Contributors to Individual Retirement Accounts (IRAs) will see a $500 increase in the contribution limit for 2024, now standing at $7,000. Those aged 50 and above can still make catch-up contributions of $1,000, bringing their total allowable limit to $8,000.

Roth IRAs: The income phase-out range for Roth IRA contributions has expanded. Single filers and heads of household will now experience a range of $146,000 to $161,000—an $8,000 increase. For married couples filing jointly, the phase-out range rises by $12,000 to $230,000-$240,000. Married individuals filing separately maintain their phase-out range at $0-$10,000.

Workplace Retirement Accounts: Individuals contributing to workplace retirement accounts such as 401(k), 403(b), and 457 plans will encounter a $500 increase in the contribution limit for 2024, reaching a maximum of $23,000. Catch-up contributions for those aged 50 and above remain at $7,500, allowing a total contribution of $30,500.

Gift Tax: The annual gift tax exclusion for 2024 has risen to $18,000—an increase of $1,000 from the previous year.

For additional details, download the full 2024 Key Data Numbers.

If you have any questions or require further clarification, please contact us. Our team is here to assist you in navigating the intricacies of the upcoming tax season.

Important Reminder: While we provide these updates for informational purposes, it's important to consult with your tax professional before implementing any changes in anticipation of the new 2024 levels.

Here's to a financially sound 2024!