With the possibility of future higher tax rates, investors may want to consider strategies that can be implemented now such as a Roth IRA conversion.
Putnam’s wealth management professionals share their views on taxes, the markets, fiscal policy, and the November election.
Most tax thresholds for income, estate, and gift taxes saw changes for 2015. In addition, the federal estate and gift tax exemption rose to $5.43 million, taking inflation into account. The following tables illustrate the key tax and income thresholds to consider when planning in 2015. 292689
Taxpayers may want to save more for retirement in 2015. The Internal Revenue Service announced higher contribution limits for 401(k)s. The deferral (contribution) limit for employees who participate in employer-sponsored retirement plans, including 401(k)s increased to $18,000 from $17,500. Catch-up contributions for people age 50 and older went up to $6,000 from $5,500. Retirement savings
If clients are stinging from this year’s tax bill, it’s time to consider strategies that may improve the situation for next year. The 2013 tax year is the first that some taxpayers saw the difference in their bills due to higher marginal income tax rates and new taxes resulting from the health-care reform law, including
2013 Tax rates, schedules, and contribution limits from Putnam Investments
With uncertainty around key tax rates as 2013 nears, many clients are looking for tactical strategies to consider in 2012 while rates are still historically low. In fact, for some clients, tax rates on long-term capital gains cannot go any lower: In the 10% and 15% tax brackets, the capital gains tax rate is zero.