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The IRS makes changes to the tax code each year. Most of the adjustments for the 2024 tax year good -- lightening taxpayer's burdens in light of current inflationary pressures. However, as the 2017 tax cuts continue to sunset, businesses might find certain deductions being reduced. 

 

A few of the more notable changes are listed below: 

 

 

Tax Brackets

 

The IRS will increase the threshhold for each tax bracket of the individual income tax. Forbes has the full list, as well as how the 2024 numbers compare with last year's brackets. 

 

Standard Deductions 

 

Standard deduction amount is higher for all categories. The 2024 numbers are as follows:

  • $29,200 for Married Filing Jointly (MFJ)
  • $14,600 for Single/Married Filing Separately (MFS)
  • $21,900 for Head of Household (HOH). 

 

Retirement Contribution Limits

 

Good news for retirement planners of all stripes: 

  • 401(k) contribution limit for 2024 increased to $23,000. 
  • SIMPLE contribution limit is now at $16,000. 
  • Traditional IRA contributions are up to $7,000 ($8,000 if over the age of 50). If you're contributing to a traditional IRA, be aware that your deduction amount may be limited by your adjusted gross income. 

 

A few other bits of retirement info: 

  • Effective starting 2024, 529 savers who choose to not attend college can instead rollover up to $35,000 penalty-free into a Roth IRA. (Rollovers are subject to Roth IRA contribution limits, and 529 account must have been open for more than 15 years.)
  • Currently, individuals 70.5 years of age or older may make a Qualified Charitable Distribution directly from an IRA account. After 2023, the contribution limit (previously $100,000) will be indexed for inflation. 
  • Employers are permitted to replace their SIMPLE retirement program with a Safe Harbor 401(k). Note: employer contributions must be mandatory,. 

 

I don't want to remember all that!

 

Don't worry! We've got you covered.