Education Base

2024 Retirement Contribution Limits

Regarding 401(k), 403(b), 457 plans, and Thrift Savings Plan:The contribution limit for 2024 has increased to $23,000, a rise from the previous year's $22,500.For individuals age 50 and older, the catch-up contribution remains at $7,500, resulting in a maximum contribution of $30,500 for 2024. For Traditional and Roth IRAs:The annual contribution limit has been raised to $7,000, up from $6,500 in 2023.Individuals aged 50 and above may continue with an additional catch-up contribution of $1,000, resulting in a total contribution of $8,000.It is also essential to note the modifications in the income phase-out range for Roth IRA contributors: For single filers and heads of household, the range is now between $146,000 and $161,000. For those married and filing jointly, the updated range is between $230,000 and $240,000.

Tax Brackets

Remember, these adjustments apply to income tax returns filed in 2025 for tax year 2024. Take a look at them below. 2024 Marginal Tax BracketsFor the tax year 2024, here's a breakdown of the tax rates from the lowest rate to the highest:10% Tax Rate: This is for single individuals with incomes of $11,600 or less and married couples filing jointly with incomes of $23,200 or less.12% Tax Rate: This applies to incomes over $11,600 for single individuals and over $23,200 for married couples filing jointly.22% Tax Rate: For singles earning more than $47,150 and married couples filing jointly earning over $94,300.24% Tax Rate: This rate is for single individuals with incomes above $100,525 and married couples filing jointly with incomes over $201,050.32% Tax Rate: This rate applies if you're single and earn over $191,950 or part of a married couple earning more than $383,900.35% Tax Rate: This rate applies to singles with incomes above $243,725 and married couples filing jointly with incomes over $487,450.37% Top Tax Rate: The highest rate applies to single taxpayers earning more than $609,350 and married couples filing jointly with incomes exceeding $731,200. 2024 Standard DeductionThe new standard deduction for married couples filing jointly will rise to $29,200, an increase of $1,500 from the 2023 tax year. For single taxpayers and married individuals filing separately, the standard deduction increases to $14,600 for 2024. For heads of households, the standard deduction will be $21,900 for 2024, an increase of $1,100 from 2023. Other Notable Changes for 2024The earned income tax credit amount will jump to $7,830 for qualifying taxpayers with three or more children, up from $7,430 for tax year 2023.The new IRS limit for 2024 FSA contributions is $3,200, up from the threshold of $3,050 for 2023.Taxpayers can give up to $18,000 each in gifts in 2024 without paying taxes, up from $17,000 in 2023.The IRS will exempt up to $13.61 million from the estate tax, up from $12.92 million for people who passed away in 2023.

Coming Soon

The Federal Reserve recently met in Jackson Hole WY where they signaled the time has come for a rate decrease this September. The actual amount is to be determined.

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