2023 Year end tax info

We hope that you and your loved ones are doing well.  As we close in on the end of the year, we wanted to provide you with some important updates for 2024.  The IRS has announced changes to retirement plan contribution limits.  Here is a highlight of those changes:
 

• For Traditional and Roth IRAs:
  • The limit on contributions will increase to $7,000
  • The catch-up contribution limit will remain at $1,000 for individuals over age 50
    • The total contribution limit is therefore $8,000 for individuals over age 50
• For employee elective deferrals for participants in a 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan:
  • The limit on contributions will increase to $23,000
  • The catch-up contribution limit will remain at $7,500 for individuals over age 50
    • The total contribution limit is therefore $30,500 for individuals over age 50
• For SIMPLE 401(k)s or SIMPLE IRAs:
  • The limit on contributions will increase to $16,000
  • The catch-up contribution limit will remain at $3,500 for individuals over age 50
    • The total contribution limit is therefore $19,500 for individuals over age 50
• Total annual contribution limit to defined contribution plans (including employer contributions) will increase to $69,000
• HSA contribution limits will increase to $4,150 for individual plans, and $8,300 for family plans.

Additionally, the Social Security administration has also announced some important updates that will take effect in 2024:
 

• A 3.2% cost-of-living adjustment to Social Security beneficiaries
• The maximum amount of earnings subject to Social Security tax will increase to $168,600
• The earnings limit for workers receiving Social Security benefits who are younger than full retirement age will increase to $22,320

 
We are monitoring additional potential changes and will discuss in future meetings as necessary.  Please make sure you consult a tax professional when making any tax-related decisions.
 
As always, if you have any questions, please feel free to reach out.  We hope you and your family have a wonderful holiday season, and best wishes to you in the New Year!
 
Mapstone Veritas Financial Group
 
 
Sources:
www.irs.gov
www.ssa.gov

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Mapstone Veritas Financial Group, Equitable Advisors and its associates do not provide tax or legal advice.  Please consult with your own tax or legal advisors regarding your own particular circumstance.

​PPG- 6072664.1 (11/23)(Exp. 11/25)