Durham Office

1502 West NC Highway 54,

Suite 501
Durham, NC 27707
Tax Tips for 2023 & Key Numbers for 2024

Tax Tips for 2023 & Key Numbers for 2024

December 14, 2023

Multi-task time on the tax planning front! While you are busy making sure you gather all your tax forms and other prep info for filing your 2023 taxes - it is also important to have your eye on the ball for 2024 tax planning. 

Remember that there is still time to make traditional IRA, Roth IRA, and Health Savings account contributions for 2023 (if you are eligible to do so).

There is a lot to keep up with as we move into 2024. There are often year-to-year changes to 'limits and amounts' for several tax-related items.  A summary of some of these items is below – the #'s referenced pertains to tax year 2024!

Note whenever an age is referenced, the calculated age is the age at the end of the tax year, so in this case 12/31/2024.

  • Employee 401k contributions$23,000 is the maximum annual contribution, and for those 50 and older an additional contribution of $7,500 for a total of $30,500 max. Be sure to adjust your 2024 contributions as needed.
  • Health Savings Accounts (HSA's), annual contribution limit. Note the contribution limits include employer contributions.  Be sure to adjust your 2024 contributions as needed
    • Self-only coverage, $4,150
    • Family coverage $8,300
    • Annual catch-up contribution limit for individuals 55 and older (by the end of the tax year), $1,000
  • Max taxable earnings for social security (OASDI, 6.2% rate), $168,600
  • Annual gift tax exclusion $18,000 (the amount of money that an individual can gift to another without having to file a gift tax return and impacting one's 'unified credit'. If you are considering gifting greater than $18,000 to an individual, please give us a call. There are often ways to do so in a very simple and tax-efficient manner.
  • Kiddie Tax - child's unearned income over $2,600 is generally taxed at parents’ rates (good example, investment income from the child's 'custodial' investment account)
  • Maximum IRA / Roth IRA contribution is at $7,000 ($8,000 for those that will be 50 years or older). Please note the following:
    • The maximum contribution amount is a 'combined limit' should you choose to make a contribution to both a Traditional IRA and Roth IRA.
    • A spouse that does not have earned income may be eligible to make a 'spousal IRA contribution'. Please call us for details regarding eligibility.

Rules around eligibility to make a traditional deductible IRA contribution are as follows.

If neither you nor your spouse (if you are married) are eligible for an employer retirement plan, then you are eligible to make a traditional deductible IRA contribution.

If you or your spouse is covered by an employer-sponsored retirement plan, then the following income phaseout ranges may limit or eliminate your ability to make a traditional deductible IRA contribution.

Note that the income phaseout is based on Modified Adjusted Gross Income (MAGI). There is of course a special calculation to calculate MAGI for IRA deduction eligibility. See your CPA for details or call us to discuss.

Your ability to make a full Roth IRA contribution, a partial one or none at all is governed by the following compensation limits.

Roth Conversions Related

Note that there is no income limit for determining eligibility to convert traditional IRA $ to Roth IRA $. There is also no limit on the amount of Roth conversions you can make, but be aware of tax consequences.

If you find this type of detail informative, please check out the following:

  • Key Numbers 2024 / Tax Reference Numbers at a Glance. This two-page document is attached and can also be accessed via the following link hereThis document includes:
    • 2024 Tax Brackets
    • Standard Deduction amounts by filing status
    • Long Term Capital Gain & Qualified Dividend tax brackets
    • Net Investment Income Tax details
    • Income phaseout info for various tax-related items (IRA and Roth IRA contributions, Education Credits and Deductions, Annual Gift Tax Exclusion)
    • Retirement Plan contribution limit details
  • Want more info? You can access our 'Comprehensive Key Numbers', a 19-page document that provides not only key tax numbers and information for 2024 but for 2023 as well. Need to check on 2024 tax brackets, standard deduction, and retirement plan contribution limits for 2024 - access this document via the following link here.


Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.

A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.