Be in the Know…

 

New for 2024: Stay on top of the latest cost-of-living changes from the IRS and Social Security Administration with this guide

Every year, federal agencies like the Internal Revenue Service and Social Security Administration assess the impact of inflation and the current environment on their areas of oversight. Often, this results in cost-of-living adjustments (COLA), which change many tax thresholds, retirement contribution limits and other tax-advantaged plans that are inflation-adjusted by law.

To help you plan for the new year, here are key 2024 adjustments that could affect how you save, spend and invest. As you review these new numbers, we are available to discuss your financial strategy and any potential adjustments to consider.

In this article:

  1. Retirement Contribution Limits

  2. Health Care Account Contribution Limits

  3. Qualified Charitable Distribution (QCD) Amounts

  4. Social Security

  5. Medicare

  6. Tax Brackets

  7. Income Phase-Out Ranges for IRAs and Roth IRAs

1) Retirement contribution limits

2) Health Care Account Contribution Limits

3) Qualified charitable distribution (QCD) amounts

4) Social Security

The coming year brings another cost-of-living adjustment (COLA) for Social Security, affecting approximately 71 million Americans, according to the Social Security Administration.

Some retirees who have begun to collect Social Security retirement benefits choose to continue working.  Individuals who are younger than full retirement age, collecting Social Security retirement benefits and continuing to work, will have some or all their Social Security benefits reduced if they earn more than certain dollar amounts.

5) Medicare 

6) tax brackets

To keep in line with inflation, the IRS has raised income thresholds for all tax brackets and increased the standard deduction.

7) Income phase-out ranges for IRAs & Roth iras

The following are the modified adjusted gross income (MAGI) phase-out ranges for Roth IRAs and traditional IRAs.