2024 Resolutions and COLA Updates

It’s the start of a new year. We have survived the holidays, reflected on the good and the bad of 2023 (hopefully more good than bad), and are starting on our 2024 resolutions. There are many different new year’s traditions; more common in Florida are parades and fireworks and less common are jumping over seven waves (Brazil) or eating lentils (Italy). As private wealth advisors, a part of our new year’s ritual is looking at tax rules that will change in the coming months. Here are a few of the 2024 increases that we are typically asked about each year.

• The annual estate tax exclusion is $13,610,000; up from $12,920,000 in 2023.
• The annual exclusion for gifts is $18,000 per person, up from $17,000 in 2023.
• The annual IRA contribution limit is $7,000 ($8,000 for those age 50 and older); up from $6,500 ($7,500 for those age 50 and older).
• The annual 401(k) maximum contribution is $23,000 (those 50 and over can contribute an additional $7,500); up from $22,500 in 2023.
• IRA owners and retirement plan account owners must start taking required minimum distributions at age 72 (73 if you reach age 72 after Dec. 31, 2022). One exception is retirement plan account owners can delay taking their required minimum distributions until the year in which they retire, unless they are a 5% owner of the business sponsoring the plan.
• The qualified charitable distribution limit from an IRA is $105,000; up from $100,000 in 2023.
• The Health Savings Account contribution limit is $4,150 for self-only coverage and $8,300 for family coverage (those 55 and older can contribute an additional $1,000); up from $3,850 for self-only coverage and $7,750 for family coverage.
• The standard income tax deduction for single taxpayers and married individuals filing separately is $14,600, for married couples filing jointly is $29,200, and for head of household is $21,900; up from $13,850, $27,700 and $20,800, respectively.

Please contact your FineMark advisor if you are interested in discussing your specific financial situation. We are always here to help.

2024 Resolutions and COLA Updates

By Read Sawczyn, J.D.
Senior Vice President & Private Wealth Advisor, Trust

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