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Avraham "AY" Rappaport, CLTC
President, Financial Professional
Yaniv "Jay" Natanov
President, Financial Planner
Eli Rappaport
Vice President, Financial Planner
Shlomo Rosenstein
Financial Professional
Ozzie Marizan
Financial Planner
Joseph Greer
Employee Benefits Administrator
Dylan Pinsky
Client Relations Manager
Premier Financial
6395 Dobbin Road, Suite 102
Columbia, MD 21045
Phone: 240-309-6001
Email: dylan.pinsky@prudential.com
Website: premierfinancial1.com
January/February 2024
It's A New Year - New Tax Rules
And here’s a bit of what you should be aware of for your 2024 financial planning.
Tax-free Gifts—You and your spouse can each make gifts of up to $18,000 tax-free in 2024, increased from $17,000 in 2023.**
Overfunded 529 College Savings Plans— Starting this year, you may roll over unused 529 Plan assets to a Roth IRA for your child’s or grandchild’s benefit. The plan must have been created at least 15 years before the rollover. The maximum amount that may be rolled over each year is the lesser of the annual IRA contribution limit or the child/grandchild’s earned income.*
Alternative Minimum Tax—Depending on income, you must calculate any AMT you might owe (at 26% or 28%) if your adjusted gross income (AGI) exceeds the ATM exemption level. You must pay that tax or your regular income tax, whichever is more. For 2024, exemption levels are increased to $133,300 (joint filers) and $85,700 (single) from $126,500 and $81.300 in 2023.**
NOTE: The numbers are the base exemption where the AMT becomes applicable, not where the 28% rate kicks in.
Social Security—This year, you’ll be paying a 6.2% social security tax on up to $168,600. of your earned income, increased from $160,200 in 2023. You’ll pay the 1.4% Medicare tax on all earned income, and an extra .9% tax is applied to earnings above $250,000 (joint filer), $125,000 (single), and $200,000 (other filing statuses). Also for retirees, Social Security benefits will be going up by 3.2%, with an increased top benefit of $45,864, which could mean more of your benefits will be subject to income tax.
HNW individuals work as hard to transfer wealth as they do creating it
* Additional requirements may apply. Discuss 529 tax rules with your tax professional. ** As estimated using US Bureau of Labor Statistics at the time of publication (Bloomberg Tax)
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Premier Financial is not affiliated with Prudential Financial. Premier Financial sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Premier Financial is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Premier Financial and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Dylan Pinsky is employed by Eli Rappaport and not The Prudential Insurance Company of America or its subsidiaries.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
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