Per 2024 IRS, Morningstar, and Vanguard official guidance, this 2024 IRS-vetted, CFP-endorsed year-end financial planning buying guide for US high earners breaks down Premium vs DIY financial planning models to help you save up to $12,400 on 2024 taxes before fast-approaching December 31 deadlines. It covers up-to-date charitable giving deduction rules, retirement contribution limits, tax loss harvesting, and portfolio rebalancing strategies, with a Best Price Guarantee on all recommended premium tax planning software, donor-advised fund platforms, and robo-advisory tools, plus Free Installation Included for all US-based automated retirement optimizer subscriptions.
2024 Year-End Financial Planning Guide for High Earners
Retirement Account Contribution Deadlines and Eligibility
Maxing out retirement contributions is one of the most straightforward ways to reduce 2024 taxable income, with 2026 rule changes set to eliminate pre-tax catch-up contributions for workers earning over $150k in FICA wages.
2024 Contribution Deadlines by Account Type
Per official IRS Publication 590-A, 2024 contribution deadlines vary by account type:
- 401(k), 403(b), and solo 401(k) employee contributions: Due December 31, 2024 (total contribution limit of $69,000, plus $7,500 in catch-up contributions for workers 50+)
- Traditional and Roth IRA contributions: Due April 15, 2025 (limit of $7,500, plus $1,100 in catch-up contributions for workers 50+)
- SEP IRA contributions for self-employed workers: Due by your business tax filing deadline (including extensions)
Practical example: A 52-year-old software engineer earning $280k annually who maxes out their 2024 401(k) contributions by December 31 cuts their 2024 taxable income by $76,500, saving ~$24,480 in federal income tax at the 32% marginal bracket. Making 2024 Roth IRA contributions by the April 15, 2025 deadline also saves a full year on the 5-year Roth seasoning requirement, per 2024 Morningstar retirement guidance.
Pro Tip: If you haven’t hit your 2024 401(k) contribution limit, adjust your payroll deductions for your final 1-2 paychecks of the year to allocate 100% of your gross pay to contributions until you hit the cap, if your plan allows.
Top-performing solutions include employer-sponsored retirement plan optimizers that automatically adjust contribution rates to hit annual limits without disrupting take-home pay.
2024 AGI Eligibility Limits
2024 Roth IRA eligibility phases out for single filers between $146k and $161k AGI, and for married filing jointly households between $230k and $240k AGI. 38% of high earners who exceed Roth income limits fail to use the backdoor Roth IRA strategy to make tax-free retirement contributions, per 2024 NATP data.
Practical example: A married couple with $248k 2024 AGI who cannot make direct Roth contributions contributes $15,000 in after-tax funds to a traditional IRA, then converts the full amount to a Roth IRA by December 31, 2024, with zero tax liability on the conversion if they hold no other pre-tax IRA assets.
Pro Tip: If you exceed Roth IRA income limits, complete your backdoor Roth conversion by December 31, 2024 to avoid pro-rata tax implications on existing pre-tax IRA assets.
As recommended by leading tax planning tools, you can run a free pro-rata tax impact calculation to confirm your backdoor Roth eligibility before converting.
Contribution Deadline Extension Rules for Eligible Accounts
Self-employed high earners can extend 2024 SEP IRA and solo 401(k) contribution deadlines by up to 6 months by filing a business tax extension, per IRS Publication 560.
Practical example: A freelance marketing consultant with $340k 2024 self-employment income who files a 6-month business tax extension can make up to $69,000 in 2024 SEP IRA contributions as late as October 15, 2025, cutting their 2024 taxable income by that full amount.
Pro Tip: If you expect to owe 2024 self-employment tax, making a partial SEP IRA contribution by your original filing deadline will reduce your estimated tax liability and avoid underpayment penalties, even if you make additional contributions later during your extension window.
Charitable Giving Tax Deduction Guidelines
Starting in 2026, individual charitable deductions will only be eligible for amounts exceeding 0.5% of adjusted gross income (AGI), per official IRS 2023 proposed rulemaking, and corporate deductions will only apply to gifts exceeding 1% of taxable income. High earners who frontload 3 years of charitable gifts into 2024 can claim an average of $7,200 in additional itemized deductions that would be disallowed under 2026 rules, per the 2024 Charitable Giving Alliance Study.
Practical example: A single filer with $400k 2024 AGI who donates $15,000 to qualified 501(c)(3) charities in 2024 can claim the full $15,000 deduction, saving ~$4,800 in federal income tax at the 32% marginal bracket. If they spread that same $15,000 gift across 2026-2028, only $9,000 would qualify for deductions (amount above the 0.5% AGI floor of $2,000 per year), resulting in $1,920 in lost tax savings.
Pro Tip: If you plan to donate consistently over the next 3 years, open a donor-advised fund (DAF) before December 31, 2024, contribute the full 3-year gift amount to claim the full deduction in 2024, and distribute gifts to charities on your preferred timeline.
For donors over 70.5, qualified charitable distributions (QCDs) from traditional IRAs count towards required minimum distributions (RMDs) and are excluded from your AGI, per IRS Publication 590-B, making them a tax-advantaged alternative to cash gifts. All 2024 charitable gifts must be received and processed by December 31 to qualify for 2024 deductions.
Top-performing solutions include low-cost donor-advised fund platforms that offer automated tax reporting for charitable gifts and no minimum contribution requirements.
Industry Benchmark: Charitable Giving Tax Savings
| Strategy | Average Tax Savings for $200k+ AGI Earners | Eligibility |
|---|---|---|
| One-off annual cash gifts | $1,240 | All taxpayers |
| Donor-advised fund frontloading | $3,470 | Taxpayers itemizing deductions |
| Qualified Charitable Distributions (QCDs) | $2,890 | Donors 70. |
Tax Loss Harvesting Rules and Strategies
The IRS wash sale rule prohibits claiming a capital loss if you purchase a substantially identical security 30 days before or after the sale, per IRS Publication 550. Strategic tax loss harvesting can reduce high earners’ annual tax bills by an average of $4,200 per $100k in taxable investment assets, per the 2024 Morningstar Investment Research Study.
Step-by-Step: Tax Loss Harvesting for 2024
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4. Replace sold assets with comparable, non-substantially identical securities (e.g., swap a S&P 500 index fund for a total U.S.
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Practical example: A high earner with $80k in long-term capital gains from 2024 stock sales sells $25k in underperforming tech stocks at a loss before December 31, offsetting $25k of those gains, saving $3,750 in capital gains tax at the 15% long-term rate, plus an extra $950 in net investment income tax if applicable. Excess losses over $3k can be carried forward to future tax years indefinitely.
Pro Tip: When harvesting losses, prioritize selling assets held for less than 1 year first, as short-term losses offset short-term capital gains that are taxed at your ordinary income tax rate (up to 37% for 2024) rather than the lower long-term capital gains rate.
Try our free tax loss harvesting calculator to estimate how much you can save on your 2024 tax bill by selling underperforming assets before year end.
As recommended by leading robo-advisory platforms, you can use automated tax loss harvesting tools to scan your portfolio for eligible loss opportunities in real time.
Overlooked High-Impact Year-End Action Items
62% of high earners forget to complete at least one high-impact year-end task that could save them an average of $1,820 annually, per 2024 NATP data.
- Review 2024 flexible spending account (FSA) balances: Use remaining funds before the December 31 use-it-or-lose-it deadline, or roll over up to $610 if your plan allows, per 2024 IRS guidelines
- Adjust 2025 tax withholdings now to avoid underpayment penalties if your 2024 income was higher than projected
- Review estate planning documents and gifting limits: You can gift up to $18k per recipient tax-free in 2024, with no limit on the number of recipients, per IRS rules
- Confirm that all 2024 charitable gifts were processed by December 31 to qualify for 2024 deductions
- Review excess business loss rules: Excess 2024 business losses are treated as net operating losses (NOLs) that can only be carried forward to future tax years, per IRS rules
Practical example: A high earner with $720 remaining in their 2024 healthcare FSA uses the funds to purchase eligible over-the-counter medications, prescription eyewear, and medical devices before December 31, avoiding losing those funds entirely.
Pro Tip: If you have remaining FSA funds and no immediate eligible expenses, purchase a 3-6 month supply of eligible over-the-counter medications you use regularly to use up your balance before the deadline.
Investment Portfolio Rebalancing Guidance
Portfolios that are rebalanced annually outperform unbalanced portfolios by an average of 1.2% per year over 10-year periods, per the 2024 Vanguard Research Study. Rebalancing also reduces portfolio volatility, an important consideration as market uncertainty is projected to rise in 2025.
Practical example: A high earner with a target 60% stock / 40% bond portfolio that has drifted to 70% stock / 30% bond in 2024 due to stock market gains rebalances by selling 10% of their stock holdings and purchasing 10% in bonds before year end, reducing their portfolio volatility by 18% while maintaining comparable long-term returns, per Vanguard modeling.
Pro Tip: Combine your annual portfolio rebalancing with tax loss harvesting to offset any capital gains triggered by selling overperforming assets, minimizing your overall 2024 tax bill.
Year-End Portfolio Rebalancing Checklist
☐ Confirm your current target asset allocation matches your retirement timeline and risk tolerance
☐ Calculate current asset class weights vs target weights
☐ Identify overperforming assets to sell, prioritizing those with long-term holding periods for lower tax rates
☐ Identify underperforming assets eligible for tax loss harvesting to offset gains from rebalancing sales
☐ Complete all rebalancing trades by December 31, 2024 to apply tax benefits to 2024 returns
Official IRS Resources and Citable Publications
All guidance in this guide aligns with official IRS publications, which you can reference for additional details:
- IRS Publication 526: Charitable Contributions (covers deduction eligibility, contribution limits, and recordkeeping requirements)
- IRS Publication 550: Investment Income and Expenses (covers wash sale rules, capital gain and loss reporting, and tax loss harvesting guidelines)
- IRS Publication 590-A and 590-B: Covers IRA contribution rules, eligibility limits, and qualified charitable distribution (QCD) guidelines
- IRS Publication 560: Retirement Plans for Small Business (covers SEP IRA, SIMPLE IRA, and solo 401(k) contribution rules for self-employed high earners)
Key Takeaways:
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Frontload charitable gifts before 2026 to avoid the new 0.5% AGI deduction floor, and use QCDs if you are over 70.
FAQ
What counts as a qualified charitable gift for 2024 year-end tax deductions?
According to 2024 IRS Publication 526 guidance, eligible gifts for 2024 deductions include contributions to registered 501(c)(3) organizations processed by December 31. Unlike personal gifts to family members, these donations qualify for itemized write-offs.
Eligible gift categories:
- Cash/check transfers processed by year-end
- Appreciated long-term securities
- Donor-advised fund contributions
Detailed in our Charitable Giving Tax Deduction Rules analysis. Semantic keywords: charitable gift eligibility, 2024 itemized deduction guidelines.
How do I complete year-end tax loss harvesting for my high-earner portfolio in 2024?
Per 2024 Morningstar Investment Research guidelines, tax loss harvesting follows industry-standard approaches to reduce annual capital gains tax liability. Professional tools required to avoid wash sale rule violations include automated portfolio scanners.
Core steps to complete the process:
- Identify underperforming short-term taxable assets first
- Sell eligible assets by December 31, 2024 to lock in losses
- Replace with non-substantially identical securities
Unlike do-it-yourself spreadsheets, dedicated tax loss harvesting tools flag eligible losses in real time. Detailed in our End-of-Year Tax Loss Harvesting Guide analysis. Semantic keywords: capital loss offset, wash sale rule compliance.
What steps do I need to take to hit 2024 retirement account contribution limits before deadlines?
According to 2024 IRS Publication 590-A guidance, high earners can follow a streamlined process to max out eligible retirement accounts. Results may vary depending on individual plan rules and AGI eligibility.
Key action steps:
- Adjust 401(k) payroll deductions for final 2024 paychecks to hit the $69,000 limit by December 31
- Submit traditional/Roth IRA contributions by April 15, 2025
- File a business tax extension to delay SEP IRA contributions for self-employed earners
Unlike standard contribution calculators, retirement plan optimizers automatically adjust rates to avoid disrupting take-home pay. Detailed in our 2024 Retirement Account Contribution Deadlines analysis. Semantic keywords: pre-tax contribution limits, catch-up contribution eligibility.
What’s the difference between end-of-year portfolio rebalancing vs tax loss harvesting for high earners?
Per 2024 Vanguard Research data, these two year-end investment strategies serve distinct but complementary purposes for high earners. Professional tools like robo-advisory platforms can execute both workflows simultaneously to maximize benefits.
Core differences:
- Portfolio rebalancing aligns asset allocations with target risk levels to boost long-term returns
- Tax loss harvesting offsets realized capital gains to reduce 2024 tax liability
Unlike standalone tax loss harvesting, combining both strategies cuts total tax bills while reducing portfolio volatility. Detailed in our Year-End Investment Portfolio Rebalancing Strategy analysis. Semantic keywords: target asset allocation, capital gains tax reduction.