Clint McCalla, CFP®
Senior Client Advisor
January 16, 2024

As tax season gets underway, please take a moment to review the included tax resource from the MEIRA Wealth team which reflects important updates for the 2024 tax year. A link to this resource is included directly below:

View Tax Resource

Here is a summary of the items that you will find in this 2024 tax resource:

Changes to 401(k), 403(b), 457 plans, and Thrift Savings Plan:

The contribution limit for 2024 has increased to $23,000 from the previous year's $22,500.  

For individuals age 50 and older, the catch-up contribution remains at $7,500, resulting in a maximum pre-tax employee contribution of $30,500 for 2024.  

Beginning in 2026, catch-up contributions for those workers making over $145,000 must be directed to a Roth 401(k) account. Those workers making under $145,000 annually will continue to have the option to contribute this catch-up contribution on a pre-tax basis into their Traditional 401(k) account.

Traditional and Roth IRAs:

The annual contribution limit has increased to $7,000, up from $6,500 in 2023.  

Individuals aged 50 and above may continue with an additional catch-up contribution of $1,000, resulting in a total contribution of $8,000.  

It is also essential to note the modifications in the income phase-out range for Roth IRA contributors: For single filers and heads of household, the range is now between $146,000 and $161,000. For those married and filing jointly, the updated range is between $230,000 and $240,000.  

Roth Contribution Options for High Earners:

Many high-income individuals run into the issue of no longer being able to make a direct contribution into a Roth IRA due to the income phaseout rule. Despite this rule, contributions to Roth IRAs can be achieved for high earners by making non-deductible IRA contributions that are then converted into a Roth IRA.

This strategy is most effective when the individual does not have an existing traditional or rollover IRA holding pre-tax monies. The Roth IRA owner must have earned income up to the amount of the desired contribution for a given tax year. This technique is colloquially known as a "backdoor" Roth contribution.  

Workers may also have the option of making indirect contributions in the above manner into a Roth 401(k) if your specific work retirement plan allows for non-deductible contributions. This is often referred to as a "mega backdoor" Roth contribution.

Please reach out to our team to determine if the above strategies are appropriate for you.

Special Topic - Qualified Charitable Distributions (QCDs):

At MEIRA Wealth, many of our clients over the age of 70.5 are increasingly realizing their charitable giving goals by writing checks to their favorite charities from their IRA investment accounts. This technique of donating is called a Qualified Charitable Distribution, also known as a QCD.  

QCDs can only be made to public charities (including religious institutions) with a maximum contribution of $100,000 per year, per IRA account owner over the age of 70.5. Donations are made by check, either written directly from your IRA checkbook or from your IRA custodian. It is important to note that the charity must cash the check by 12/31 of the year in which you wish to make the donation.

Here is an example:  

The amount donated from your IRA in this manner is excluded from taxes and your donation can count towards your Required Minimum Distribution for the tax year in which the donation is made. For IRA owners who are charitably inclined, this is an incredibly tax efficient strategy.

Please be sure to communicate with your CPA or tax preparer if you move forward with implementing any of the techniques detailed above as there are tax filing considerations that should be reviewed with your tax professional.

As always, we encourage you to reach out to us at if you would like to discuss any of the above strategies or have a conversation with our team.

Clint McCalla, CFP®
Senior Client Advisor
January 16, 2024
Important Tax Updates for 2024
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