9 Inflation-Related Tax Predictions for 2024 Retirement Planning

Each year, many amounts in the Internal Revenue Code are adjusted for inflation, reflecting the fact that Americans' financial lives are directly affected by macroeconomic trends and that key tax brackets and deferral limits must be regularly attuned to maintain balance in the tax code. Generally, the IRS sets its formal adjustments in mid-October, but there is now enough inflation data available from September 2022 through August 2023 to make relatively reliable projections for 2024 possible, and that is exactly what Bloomberg Tax has done. In a major new report, the research and news organization uses data from the consumer price index to project 2024 inflation-adjusted amounts for many key tax rates and . Notably, as Bloomberg Tax warns, there may be instances where a literal application of an IRC provision may result in an amount different from the amount Bloomberg Tax expects the IRS to publish when it releases official inflation-adjusted amounts later in 2023. Nonetheless, the figures in the report offer an opportunity for financial advisors and their clients to start planning ahead for next year. See the slideshow for a selection of key tax projections that will be highly relevant for financial advisors working with clients focused on preparing for and navigating retirement.