December 2024 newsletter

The days are getting shorter as 2024 comes to a close. Time marches on, yet this time of year reminds us to savor each moment and count our blessings.

In this newsletter, we’ll briefly go over some new contribution limits and to-do’s for a stress-free New Year. You’ll have plenty of time left over for eggnog, ugly sweaters and making memories!

New IRS limits – and more of the same?

IRS announces the 2025 retirement deferral limits:

• 2025 401k – $23,500, catch-up $7,500 for those over 50 or $11,250 for those 60 to 63
• 2025 Traditional & ROTH IRA – $7,000, catch-up $1,000 for those over 50
• 2025 SIMPLE IRA – $16,500, catch-up $3,500 for those over 50 or $5,250 for those 60 to 63

TCJA might not sunset after all?

Republicans announced plans to renew the Tax Cuts and Jobs Act (TCJA) within their first 100 days in office. This wide-ranging set of tax provisions was initially set to expire at the end of 2025. While an extension of the TCJA is far from a given, we will monitor the situation and alter tax projections as needed.

Year-End Moves

Believe it or not, there is still time to save on your 2024 taxes! Here are some tips:

• Top off your retirement contributions – Max out your retirement deferral at your job. If you don’t have retirement with your employer, you might be able to contribute to a Traditional IRA. If you’re self-employed, set up a SIMPLE or SEP IRA plan to both set aside retirement funds and save on your tax bill.
• Consider a qualified charitable distribution (QCD) before year-end if you don’t need your RMD money. While you cannot deduct the QCD as a charitable contribution, the distribution will be excluded from your taxable income and satisfy your RMD.
• Bunch your deductions. If you’re within striking distance of itemizing deductions on your tax return (for 2024, that is $14,600 for singles and $29,200 for married couples), you can lower your tax bill by “bunching†deductible expenses before year-end. You can “bunch†charitable contributions, for example, by doubling your donations in one year, and then skipping the following year.
• Begin gathering documents right now. Designate a folder specifically for tax documents. Organized
  records will help both of us make sure tax time is a lot less taxing!

Dates to Remember

• December 31st – BOI reporting due for entities in existence prior to 1/1/24
• January 15th – Fourth quarter 1040 estimates due for 2024 tax year
• January 31st – W-2s and most 1099 forms must be distributed to employees and vendors

“Sometimes the best Christmas is remembering what you’ve already got.†— Cathy Guisewite