November, 2013 Newsletter
Provided by Leimberg Information Services
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FLASH: IRS INFLATION FIGURES
The IRS has just released inflation-adjusted figures for 2014. We’ve listed below some of the more important numbers.
Planners should note that estates of decedents who dying in 2014 will have a basic exclusion amount of $5.34 million, up from the 2013 exclusion of $5.25 million.
The annual exclusion for gifts remains at $14,000 for 2014.
FACTS FOR 2014:
$6,200 for singles
$6,200 for married persons filing separate returns, and $12,400 for married couples filing jointly
$9,100 for heads of household
Limitation for itemized deductions claimed on tax year 2014 returns of individuals begins with incomes of $254,200 or more ($305,050 for married couples filing jointly).
Personal Exemption: $3,950
Note: Phase-out starts with adjusted gross incomes of $254,200 ($305,050 for married couples filing jointly).
Complete phase out of the exemption occurs at $376,700 ($427,550 for married couples filing jointly.)
Earned Income Credit: The maximum earned income credit amount is $6,143 for taxpayers filing jointly who have three or more qualifying children.
Estate Tax Exclusion: $5.34 million
Annual Exclusion for Gifts: Remains at $14,000 for 2014.
Many pension limitations (e.g. those governing section 401(k) plans and IRAs) will not change because the increase in the consumer price index didn't hit statutory thresholds.
401(k) contribution limit: $17,500
403(b) contribution limit: $17,500
457 plans (Most): $17,500
Thrift Savings Plan Limits: $17,500
The catch-up contribution limit for those aged 50 and over: $5,500.
Traditional IRA Deduction Phase-Outs: Single individuals or heads of household who are covered by a workplace retirement plan - phased out at modified adjusted gross incomes between $60,000 and $70,000.
Workplace Retirement Plan Phase-Outs: For married couples filing jointly, in which the spouse who makes the IRA contribution - income phase-out range is $96,000 to $116,000
IRA contributor not covered by a workplace retirement plan married to someone who is covered - deduction phased out when couple's income is between $181,000 and $191,000.
HOPE THIS HELPS YOU HELP OTHERS MAKE A POSITIVE DIFFERENCE!
LISI Estate Planning Newsletter #2157 (October 31, 2013) at http://www.LeimbergServices.com Copyright 2013 Leimberg Information Services, Inc. (LISI). Reproduction in ANY Form or Forwarding to ANY Person – Without Express Permission – Prohibited.
Rev. Proc. 2013-35; 2013-47 IRB 1; IR-2013-86
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