On November 9, 2023, the U.S. Internal Revenue Service (IRS) released the annual inflation adjustments to be used by individual taxpayers on their 2024 returns (that is, the returns that are generally filed in 2025).1 Over 60 tax provisions were updated, including tax rates and thresholds applicable to all taxpayers and certain provisions applicable to international assignees and expatriates. Also, on November 1, 2023, the IRS released the annual inflation adjustments applicable to 401(k) plans, IRAs, and other retirement savings and pension vehicles.2
In addition to the release by the IRS, the U.S. Social Security Administration (SSA) announced3 on October 12, 2023, that the maximum amount of wages subject to Social Security will increase from $160,200 to $168,600 in 2024. This 5.25-percent increase, while significant, is much smaller than the 9-percent increase of the prior year. The press release was accompanied by a fact sheet outlining the inflation adjustments to other key social security thresholds and limitations.4