Donna Cator, CFP®, CDFA®
Vice President - Wealth Planning Advisor
[email protected]941.366.7222 x50623
In order to ensure your financial plan meets your goals, it’s
important to keep up to date with the latest federal numbers.
For example, there are inflation adjustments, expiring tax
breaks and changes to rules coming up in 2024 that could
impact how much you can save, gift, deduct, etc. Taxpayers
will need to be mindful, too, that numerous provisions from
the Tax Cuts and Jobs Act are sunsetting at the end of 2025.
The big news for 2024 is the tax brackets and tax rates, which
are shifting higher by 5.4%. This could provide the ability for
Americans to increase their take-home pay and shield more of
their income from the IRS.
In 2024, the standard deduction will rise to $29,200 (up from
$27,700 in 2023) for married filing jointly and for single payers
it is $14,600 (up from $13,850 in 2023). Heads of households
will see their standard deduction jump to $21,900 (up from
$20,800).
The estate, gift, and generation-skipping transfer (GST)
exclusion for 2024 is $13,610,000 (up from $12,920,000 in
2023). These higher lifetime exemption amounts are due to
“sunset” at the end of 2025, so you have less than two years
to prepare.
The annual gift exclusion is $18,000 for 2024. This is the
amount you can give to another without reporting it on a gift
tax return. Payments made directly for tuition and medical
expenses are unlimited.
- 401(k), 403(b), 457(b), Roth 401(k): $23,000 contribution
limit plus catch up of $7,500 if 50 or older.
- Simple plans: $16,000 contribution limit plus catch up of
$3,500 if 50 or older
- Traditional nondeductible: $7,000 contribution limit plus
catch up of $1,000 if 50 or older.
- Traditional deductible (if covered by a plan): Same but there
are income limits.
- Roth: $7,000 contribution limit plus catch up of $1,000 if 50
or older.
- Married filing jointly: $123,000-$143,000
- Single or head of household: $77,000-$87,000
- Married filing separately: $0-$10,000 and $230,000-
$240,000 if one spouse is covered by a plan.
- Married filing jointly: $230,000-$240,000
- Single or head of household: $146,000-$161,000
- Married filing separately: $0-$10,000
- Roth conversion: No income limit
Taxpayers age 70½ or older can make tax-free distributions up
to $105,000 from an IRA directly to charities in 2024 (up from
$100,000). The distributions will decrease taxable income if
included as a part of a Required Minimum Distribution (RMD)
and, with limited exceptions, should be used by all those over
70 ½ who plan to make charitable contributions.
- Individuals: $4,150 plus $1,000 catch up for 55 and older.
- Families: $8,300 plus $1,000 catch up for 55 and older.
This is just a sample of the key numbers for 2024, there are
many more not listed here. To make sure you are taking
advantage of all the tools to assist in achieving your goals,
schedule a meeting with one of our knowledgeable team
members. We are always here to help and wish you all the
best in 2024!
This material is provided for general information purposes only. Canandaigua National Trust Company of Florida is an affiliate of Canandaigua National Bank & Trust. Investments are not FDIC insured, not bank deposits, not obligations of, or guaranteed by, Canandaigua National Bank & Trust or any of its affiliates, including Canandaigua National Trust Company of Florida. Investments are subject to investment risks, including possible loss of principal amount invested. Past performance is not indicative of future investment results. Before making any investment decision, please contact your legal, tax or financial advisor. Investments and services may be offered through affiliate companies.