Key Financial Figures You Need To Know For 2024

Each year there are tax changes and interest rate changes that happen that can impact your investment opportunities, so it’s important to stay on top of the changes so you can adjust your savings and investment accounts. The government will often adjust tax brackets and interest rates due to inflation and other economic factors each year, and you may also want to adjust your strategies depending on your needs and how close you are to your retirement .

IRA

When it comes to your IRA, the amount you could contribute in 2023 was $6,500 plus an additional $1,000 catch up amount if you are 50 years of age or older. In 2024, you’re now allowed to contribute an additional $500 to either a Traditional IRA or Roth IRA, making your allocable amount a total $7,000. The catch-up provision is not adjusted, so if you’re over 50 years old, you’re still capped at the additional $1,000. Both types of IRA accounts allow you until April 15 th of the following year (or the tax deadline) to make a deductible contribution.

401(k)

Your 401(k) has changes as well coming next year. In 2023, you can contribute $22,500 plus an additional $7,500 if you’re age 50 or older. For next year, that under 50 contribution limit has increased by $500 just like IRAs have – so for 2024, if you’re under 50 you can contribute up to $23,000 in total and if you’re over 50 you can contribute an additional $7,500 into your 401(k). These limits hold true not just for your 401(k) but also a 403(b), 457(b) and a Roth 401(k) as well.

The annual compensation limit used to determine the amount that an employer can match your 401(k) will also increase in 2024. In 2023 this amount was $330,000 and it will increase to $345,000. The total amount of dollars that can do into a qualified retirement plan also increases in 2024, from $66,000 in 2023 to $69,000 in 2024.

HSA

Health Savings Accounts can be an excellent vehicle for investing as they offer a triple tax benefit – and in 2024 the contribution amount for these accounts will increase. In 2024, the new contribution amount is $8,300 with a catch up of $1,000 if you’re over 55 years old. If you’re single or on an individual high deductible plan, the cap is half, so $4,150. This is overall a $550 increase from the 2023 amount.

Social Security

As far as Social Security , there will be changes next year as well. In 2023 you were taxed on Social Security for the first $160,200 of income until you received the income bonus and in 2024 you’re taxed for FICA on the first $168,600 before you get the reprieve. For the 71 million plus people currently on Social Security, you’ll receive a 3.2 increase next year on your payments thank for the COLA cost of living adjustment.

These figures can be a lot to sort through but it helps to plan accordingly when it comes to your finances and your retirement . The help of a financial planner may help you to sift through the noise and to strategize with what is most impactful to you and your situation.

By Andrew Rosen, Contributor