New IRS changes take effect in 2024

IRS has rolled out a number of changes for 2024.

IRA contribution limit increases:

The limit on annual contributions to an IRA increases $7,000, up from $6,500. This applies to Traditional IRA and Roth IRAs.

The IRA catch-up contribution limit for individuals aged 50 and over remains at $1,000 for 2024.

Keep in mind that income ranges determine eligibility to make deductible contributions to Traditional IRAs and to contribute to Roth IRAs.

401(k) limit increase:

Americans can contribute up to $23,000 into a 401(k) and most 457 plans in 2024. This is a $500 increase over the 2023 limit.

Social Security

Millions of Americans will see a 3.2% cost-of-living adjustment to their Social Security retirement and disability benefits. This information can be found on a recently released IRS Fact Sheet.

Tax brackets were adjusted which we typically expect to see year to year.

And finally, the standard deduction that you will use when you file your 2024 taxes has increased as follows:

Standard deduction for married couples filing jointly will be $29,200, a $1,500 increase from 2023.

Standard deduction for single taxpayers will be $14,600, a $750 increase from 2023.

Additional reading on this topic, available here.