According to the Social Security Administration, the 71 million Americans who receive Social Security benefit and Supplemental Security Income (SSI) payments will see an increase of 3.2% next year. This is an average increase of approximately $50/month in payments.
While we wait for official 2024 numbers for tax brackets and contribution limits, based on the most recent inflation data, multiple finance and accounting firms have calculated their own estimates. Here’s a summary of some potential changes next year according to Thomson Reuters*:
- Standard Deduction may increase to $29,200 (filing jointly) and $14,600 (single).
- Regular IRA/Roth IRA contributions limits expected to increase to $7,000.
- Income limits for various retirement contributions may increase between $8,000 and $12,000.
- Federal Estate and Gift Tax Exemption expected to increase to $13,610,000.
Remember, these are estimates and the final numbers will come later. Should you have any questions in the meantime, you can always reach out to us.
Northeast Planning Associates, Inc. and LPL Financial do not provide tax advice. Clients should consult with their personal tax advisors regarding the tax consequences of investing.