TAX AND ESTATE PLANNINGProper attention to tax issues on anannual basis, in addition to a clearlydrafted and well executed...
Medicare Tax of 2013The Patient Protection and Affordable Care Act(PPACA) creates a new Medicare tax for 2013 of3.8% on in...
Retirement PlanningYear Maximum Contribution (if under age 50) Maximum Contribution (if over age 50) Contribution Deadline...
Personal Income Tax RatesThe income tax rates for most individuals will stay at10%, 15%, 25%, 28%, 33% and 35%. However, a...
Capital Gains Tax RatesThe top rate for capital gains and dividends will permanently rise to 20 % (upfrom 15%) for taxpaye...
Dividend Income TaxesThe Act extends capital gains rate treatment for qualified dividends.Under the Act, qualified dividen...
Estate Tax ChangesEstate Tax Exclusion. The Act permanently maintains the $5 million estate taxexclusion amount. This amou...
Estate Tax ChangesGST(Generation Skipping Tax) Exclusion. The Act makes permanent the unification ofthe estate tax and GST...
MORE QUESTIONS? CALLTODAY TO SCHEDULE YOURFINANCIAL ROADMAPDISCUSSIONISN’T IT TIME FOR YOUR FINANCIAL PLAN?
Upcoming SlideShare
Loading in …5
×

Issues in Tax and Estate Planning

233 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
233
On SlideShare
0
From Embeds
0
Number of Embeds
14
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • This template can be used as a starter file for presenting training materials in a group setting.SectionsRight-click on a slide to add sections. Sections can help to organize your slides or facilitate collaboration between multiple authors.NotesUse the Notes section for delivery notes or to provide additional details for the audience. View these notes in Presentation View during your presentation. Keep in mind the font size (important for accessibility, visibility, videotaping, and online production)Coordinated colors Pay particular attention to the graphs, charts, and text boxes.Consider that attendees will print in black and white or grayscale. Run a test print to make sure your colors work when printed in pure black and white and grayscale.Graphics, tables, and graphsKeep it simple: If possible, use consistent, non-distracting styles and colors.Label all graphs and tables.
  • This is another option for an Overview slide.
  • This is another option for an Overview slide.
  • This is another option for an Overview slide.
  • Give a brief overview of the presentation. Describe the major focus of the presentation and why it is important.Introduce each of the major topics.To provide a road map for the audience, you can repeat this Overview slide throughout the presentation, highlighting the particular topic you will discuss next.
  • Keep it brief. Make your text as brief as possible to maintain a larger font size.
  • Keep it brief. Make your text as brief as possible to maintain a larger font size.
  • Keep it brief. Make your text as brief as possible to maintain a larger font size.
  • Issues in Tax and Estate Planning

    1. 1. TAX AND ESTATE PLANNINGProper attention to tax issues on anannual basis, in addition to a clearlydrafted and well executed estateplan (even if only the creation of asimple will) can have a huge impacton your quality of life. Don’t letothers make decisions; they maynot satisfy your goals!
    2. 2. Medicare Tax of 2013The Patient Protection and Affordable Care Act(PPACA) creates a new Medicare tax for 2013 of3.8% on income exceeding $200K (single) & $250K(married)IRA & pension income does apply to $200K &$250K limits
    3. 3. Retirement PlanningYear Maximum Contribution (if under age 50) Maximum Contribution (if over age 50) Contribution Deadline2012 $5,000 $6,000 4/15/20132013 $5,500 $6,500 4/15/2014Year Maximum Salary Deferral (if under age 50) Maximum Salary Deferral (if over age 50) Contribution Deadline2012 $17,000 $22,500 12/31/20122013 $17,500 $23,000 12/31/2013Year Maximum Contribution (if under age 50) Maximum Contribution (if over age 50) Contribution Deadline2012 $50,000 $55,500 4/15/2013 (plus extensions)2013 $51,000 $56,000 4/15/2014 (plus extensions)Year Maximum Contribution (if under age 50)2012 $50,0002013 $51,000Year Maximum Contribution (if under age 50) Maximum Contribution (if over age 50) Contribution Deadline2012 $11,500 $14,000 4/15/2013 (plus extensions)2013 $12,000 $14,500 4/15/2014 (plus extensions)Year Annual Gift Tax Exlusion2012 $13,0002013 $14,000Annual Gifting Amounts4/15/2013 (plus extensions)Simple IRA Contribution Limits and DeadlinesIRA & Roth IRA Contribution Limits and Deadlines401(k) & Qualified Plan Contribution Limits and DeadlinesSEP IRA/Profit Sharing/Money Purchase Contribution Limits and DeadlinesContribution Deadline4/15/2014 (plus extensions)
    4. 4. Personal Income Tax RatesThe income tax rates for most individuals will stay at10%, 15%, 25%, 28%, 33% and 35%. However, a 39.6% rate will applyfor income above the applicable threshold. The applicable threshold is$450k for joint filers and surviving spouses, $425k for heads ofhousehold, $400k for single filers, and $225k for married taxpayersfiling separately. These dollar amounts are inflation-adjusted for taxyears after 2013.
    5. 5. Capital Gains Tax RatesThe top rate for capital gains and dividends will permanently rise to 20 % (upfrom 15%) for taxpayers with incomes exceeding $400k ($450k for marriedtaxpayers). When taking into account the above mentioned new 3.8%Medicare surtax on investment-type income and gains for tax yearsbeginning after 2012 the overall rate for higher income taxpayers may be ashigh as 23.8 %.However, for taxpayers whose ordinary income is taxed at the 15% or lowerrate, capital gains and dividends will permanently be subject to a 0% (ZERO)rate. Taxpayers who are subject to a 25% or greater rate on ordinaryincome, but whose income levels fall below the $400k/$450kthresholds, will continue to be subject to a 15%rate on capital gains andqualified dividends. (The combined rate will be 18.8%for those individualssubject to the new 3.8% Medicare tax.)
    6. 6. Dividend Income TaxesThe Act extends capital gains rate treatment for qualified dividends.Under the Act, qualified dividends will be continue to be taxable at 15%for most taxpayers, but the rate will increase to 20% for taxpayers withincome above $400k(for single filers) or $450k(for joint filers).Generally, qualified dividends include dividends received from a domesticcorporation or a qualified foreign corporation on stock held by thetaxpayer for more than 60 days during a specified 121-day period. Notethat dividends may also be subject to the 3.8% Medicare tax, dependingon the individuals income levels.
    7. 7. Estate Tax ChangesEstate Tax Exclusion. The Act permanently maintains the $5 million estate taxexclusion amount. This amount is adjusted for inflation each year, beginning with2012. For 2013, the inflation-adjusted estate tax exclusion amount is $5.25 million.This means that a person dying in 2013 can transfer up to $5.25 million ($10.5million for a married couple) (reduced by lifetime taxable gifts) at death withoutpaying estate tax.Gift Tax Exclusion. The Act makes permanent the unification of the gift and estatetax exclusion amounts. This means that in 2013 each person can make lifetime giftsup to $5.25 million without paying gift tax. However, all gifts that use a portion ofthis gift tax exclusion will reduce the donors estate tax exclusion available at death.For example, if a parent makes a $2 million lifetime taxable gift to a child, theparents remaining estate tax exclusion amount is reduced by $2 million at death.The lifetime gift tax exclusion only applies to gifts in excess of the annual giftexclusion (i.e., the annual amount a person may gift to any person tax-free). For2013, the annual gift exclusion is $14,000 per person (or $28,000 per marriedcouple).
    8. 8. Estate Tax ChangesGST(Generation Skipping Tax) Exclusion. The Act makes permanent the unification ofthe estate tax and GST exclusion amounts. This means that in 2013 each person canmake transfers to grandchildren (or multi-generational trusts) of up to $5.25 millionwithout paying a GST tax.Maximum Estate, GST, and Gift Tax Rates. The Act permanently caps the maximumestate, gift, and GST tax rates at 40 percent. This is a five percent increase from themaximum rate in 2012, but 15 percent less than what the maximum rate would havebeen if the Act had not been enacted.
    9. 9. MORE QUESTIONS? CALLTODAY TO SCHEDULE YOURFINANCIAL ROADMAPDISCUSSIONISN’T IT TIME FOR YOUR FINANCIAL PLAN?

    ×