CTC tips: 2015 tax limits


It’s March, so it must be tax season. For the first several months of the year we focus a significant amount of time on the tax side of our work.  There is always something new – some new regulations to incorporate into reporting and new rules to work through.

We like to use this time early in the year to bring a few tax items to your attention:

  • The IRS has increased the contribution limit for deposits into your 401(k) or similar plan in 2015 from $17,500 to $18,000.  The catch-up contribution limit for those over 50 has also been increased to $6,000.
  • The annual gift exclusion amount remains at $14,000.  That means that you can give anyone you would like up to $14,000. If you are married, your spouse can do the same.
  • The highest income tax bracket, 39.6%, applies to single taxpayers with taxable income over $413,201 and joint filers with income over $464,850. It also applies to estates and non-grantor trusts at taxable income over $12,301.
  • The estate tax exemption amount in 2015 is $5,430,000 per person, and $10,860,000 per couple. Portability remains in place.
  • The IRS has changed the rules on nontaxable IRA rollovers, limiting them to one per year.  A rollover is different from an IRA transfer.  With an IRA transfer, the funds move from one trustee/custodian directly to another trustee/custodian. Transfers are not limited.  With a rollover, the funds are distributed out of the IRA to the owner who then has 60 days to redeposit the funds into an IRA. Beginning after 1/1/15, only one rollover from an IRA to another is allowed in any 12-month period, no matter how many IRAs you have.*

We understand each individual tax situation is unique and we encourage you to talk to your tax advisor.

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