New for 2024: Retirement limits, tax brackets and more


Stay on top of the latest cost-of-living changes from the IRS and Social Security Administration with this guide.

Every year, federal agencies like the Internal Revenue Service and Social Security Administration assess the impact of inflation and the current environment on their areas of oversight. Often, this results in cost-of-living adjustments (COLA), which change many tax thresholds, retirement contribution limits and other tax-advantaged plans that are inflation-adjusted by law.

To help you plan for the new year, here are key 2024 adjustments that could affect how you save, spend and invest. As you review these new numbers, we are available to discuss your financial strategy and any potential adjustments to consider.

In this article:

  1. Tax adjustments
  2. Retirement contribution limits
  3. Income phase-out ranges for Roth and traditional IRAs
  4. Health care account contribution limits
  5. Qualified charitable distribution (QCD) amounts
  6. Social Security
  7. Medicare

Tax adjustments

To keep in line with inflation, the IRS has raised income thresholds for all tax brackets and increased the standard deduction.

Income tax brackets – for taxable income in 2024

Income thresholds for tax brackets will increase by approximately 5.4% for 2024. Taxable income is calculated by subtracting your deductions from your adjusted gross income.

Tax bracket

Single

Married filing jointly

Head of household

Married filing separately

10%

$0–$11,600

$0–$23,200

$0–$16,550

$0–$11,600

12%

$11,600–$47,150

$23,200–$94,300

$16,550–$63,100

$11,600–$47,150

22%

$47,150–$100,525

$94,300–$201,050

$63,100–$100,500

$47,150–$100,525

24%

$100,525– $191,950

$201,050–$383,900

$100,500–$191,950

$100,525–$191,950

32%

$191,950–$243,725

$383,900–$487,450

$191,950–$243,700

$191,950– $243,725

35%

$243,725–$609,350

$487,450–$731,200

$243,700–$609,350

$243,725– $365,600

37%

$609,350+

$731,200+

$609,350+

$365,600

Please note: The tax brackets above are for the 2024 tax year. They are not used to calculate 2023 taxes.

General standard deduction  

Filing status

2023

2024

Single

$13,850

$14,600

Married filing jointly

$27,700

$29,200

Head of household

$20,800

$21,900

Married filing separately

$13,850

$14,600

Additional standard deduction for those 65+ or blind

Filing status

2023

2024

Single / head of household

$1,850

$1,950

Married (joint, separate) or surviving household

$1,500

$1,550

Dependent standard deduction

 

2023

2024

Dependent with investment income only

$1,250

$1,300

Dependent with earned income

$1,250–$13,850

$1,300–$14,600

Estate tax exclusion amounts

2023

2024

$12.92 million

$13.61 million

Gift tax – annual exclusion

2023

2024

$17,000

$18,000

Retirement contribution limits                                  

401(k), 403(b), 457 plan, Thrift Savings Plan

 

2023

2024

Elective deferral limit

$22,500

$23,000

Additional catch-up amount for employees 50+

$7,500

$7,500 (no change)

SIMPLE retirement plans

 

2023

2024

Elective deferral limit

$15,500

$16,000

Additional catch-up amount for individuals 50+

$3,500

$3,500 (no change)

IRAs (traditional IRAs and Roth IRAs)

For 2024, the total contributions you can make to any IRA (traditional or Roth) can’t be more than the following limits:

 

2023

2024

Individuals

$6,500

$7,000

Additional catch-up amount for individuals 50+*

$1,000*

$1,000*

*Not subject to an annual cost-of-living adjustment.

Income phase-out ranges for Roth and traditional IRAs

The following are the modified adjusted gross income (MAGI) phase-out ranges for Roth IRAs and traditional IRAs.

MAGI phase-out range – for making contributions to Roth IRAs

 

2023

2024

Single/head of household

$138,000–$153,000

$146,000–$161,000

Married couple filing jointly

$218,000–$228,000

$230,000–$240,000

Married individual filing a separate return who makes contributions to a Roth IRA

$0–$10,000*

$0–$10,000*

*Not subject to an annual cost-of-living adjustment.

MAGI phase-out range – for making deductible contributions to Traditional IRAs, if covered by a plan at work

 

2023

2024

Single/head of household

$73,000–$83,000

$77,000–$87,000

Married couple filing jointly

$116,000–$136,000

$123,000–$143,000

Individual not covered by a workplace retirement plan but is married to someone who is covered

$218,000–$228,000

$230,000–$240,000

Married individual filing a separate return who is covered by a workplace retirement plan

$0–$10,000*

$0–$10,000*

*Not subject to an annual cost-of-living adjustment.

Health care account contribution limits

Health savings accounts (HSA)

 

2023

2024

Individual

$3,850

$4,150

Family

$7,750

$8,300

Catch-up (for those 55+)

$1,000*

$1,000*

*Not subject to an annual cost-of-living adjustment.

Health care flexible spending accounts (FSA)

 

2023

2024

Maximum

$3,050

$3,200

Carryover maximum

$610

$640

Qualified charitable distribution (QCD) amounts

 

2023

2024

Regular limit

$100,000

$105,000

Social Security

The coming year brings another cost-of-living adjustment (COLA) for Social Security, affecting approximately 71 million Americans, according to the Social Security Administration.1

 

2023

2024

COLA benefit increase

8.7%

3.2%

Maximum earnings subject to Social Security tax

$160,200

$168,600

Earnings limitations for retirees

Some retirees who have begun to collect Social Security retirement benefits choose to continue working.  Individuals who are younger than full retirement age, collecting Social Security retirement benefits and continuing to work, will have some or all their Social Security benefits reduced if they earn more than certain dollar amounts.2

 

2023

2024

Earnings limit for workers who are younger than full retirement age (benefits reduced $1 for each $2 over the earnings limit)

$21,240

$22,320

Earnings limit for people in the year they reach their full retirement age in 2023/2024, but before the month of full retirement age (benefits reduced $1 for each $3 over the earnings limit)

$56,520

$59,520

Medicare 

Medicare Part B premium and deductible amounts

 

2023

2024

Standard monthly premium

$164.90

$174.70

Annual deductible for all beneficiaries

$226

$240

Medicare Part A deductible and coinsurance amounts

 

2023

2024

Inpatient hospital deductible

$1,600

$1,632

Daily coinsurance for days 61–90

$400

$408

Daily coinsurance for lifetime reserve days

$800

$816

Download our Medicare guide

For more Medicare information, including the 2024 IRMAA brackets, read this guide. It will help you understand Medicare and the choices available to you.

Let’s discuss how these changes may affect your financial strategy

We can walk you through how to take advantage of these changes considering your financial goals.