Historically, October is the month the IRS announces changes to certain figures for the upcoming year. These changes are based on the Consumer Price Index, as of September 30.
Here are the highlights:
The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), and most 457 plans has increased to $23,000. The “catch-up” adjustment for those over age 50 remains $7,500. The total limit for those over age 50 in 2024 will be $30,500.
The contribution limits for Traditional and Roth IRAs are increasing to $7,000. The “catch-up” adjustment for those over age 50 remains at $1,000, thus making the total contribution limit $8,000 for those over age 50.
The Social Security Administration announced a 3.2% increase in Social Security benefits for 2024. The maximum earnings subject to Social Security tax will also increase to $168,600.
The maximum Social Security benefit for a worker retiring at full retirement age in 2024 will be $3,822 per month.
On November 9, the IRS announced the basic Federal exclusion amount for decedents who die in 2024 will increase to $13,610,000 ($12,920,000 in 2023). The annual exclusion for gifts for 2024 will increase to $18,000.
On October 12, 2023, the Centers for Medicare and Medicaid Services announced that the 2024 Part B Medicare premiums for individual filers with modified adjusted gross income less than or equal to $103,000 ($206,000 for married taxpayers) will increase by $9.80 to $174.70. The annual deductible for Medicare Part B beneficiaries is increasing by $14 from $226 to $240.
Don’t hesitate to contact us if you have questions about these numbers.