"Understanding the Rise in Social Security Taxes for High Earners in 2024"

In 2024, high earners will pay more in Social Security taxes due to an increase in the salary limit subject to the tax, from $160,200 in 2023 to $168,600. This could result in an additional $1,041.60 in taxes for those at the threshold. Strategies to manage this increase include adjusting income through deferred compensation plans or, for self-employed individuals, structuring income between salary and distribution of earnings. However, these strategies must be carefully managed to avoid IRS penalties and to ensure adequate retirement benefits.