Things to Know Heading into 2024
The Corporate Transparency Act (CTA) will become effective on January 1. For companies in existence prior to January 1, if the company is not exempt (and it is good to start with the presumption it is not), beneficial ownership report will need to be filed with FinCEN before the end of 2024. Companies formed on or after January 1, 2024, must file their report within 90 days after creation. Failure to comply with the CTA can result in substantial fines.
The estate, gift, and generation skipping transfer tax exemption amounts will increase from $12.92M to $13.61M on January 1.
The annual exclusion for gifts will increase from $17,000 to $18,000 per person on January 1.
On January 1, the gifts to a spouse who is not a citizen of the United States that are not included in the total amount of taxable gifts made during that year, will increase from $175,000 to $185,000 on January 1. This does not include gifts of future interests in property.
Individuals who receive Social Security or Supplemental Security Income (SSI) benefits will receive a 3.2 percent cost-of-living adjustment for 2024.
Retirement account contribution limits will be increased as follows:
The contribution limit for employees who participate in 401(k), 403(b), and most 457 plans, as well as the federal government's Thrift Savings Plan is increased to $23,000. The catch-up contribution for employees aged 50 and over remains $7,500.
The limit on annual contributions to an IRA increased to $7,000, up from $6,500. The IRA catch‑up contribution limit for individuals aged 50 and over remains $1,000.
The 2024 contribution limit for SIMPLE IRAs is $16,000 with a $3,500 catch-up contribution for individuals aged 50 and over.
This post is for informational purposes only and not for the purpose of providing legal advice. You should contact an attorney to obtain advice with respect to any particular issue or problem. Nothing herein creates an attorney-client relationship between Hallock & Hallock and the reader.