If you have >$250k & aren't earning 5% on your cash, ask about our cash mgmt program
267-613-8406 | Lansdale, PA
267-613-8406 | Lansdale, PA
If you have >$250k & aren't earning 5% on your cash, ask about our cash mgmt program
New Tax Rates for 2023
The table above shows the new Federal Income tax rates, standard deduction amounts and the Social Security Income Tax limit for 2023.
New IRA and 401K Limits for 2023
The maximum 401K contribution for 2023 is $22,500 -- with an additional $7,500 allowed for anyone age 50 and above.
For those eligible for IRA and Roth IRA contributions, the limit has increased to $6,500 for 2023.
Gift Tax Annual Exclusion
Effective January 1, 2023, the gift tax annual exclusion will increase from $16,000 (2022 number) to $17,000 per recipient. This means you can gift this amount to as many people as you wish in 2023 without using up your lifetime gift and estate tax exemption or paying gift tax. Married couples who gift-split may gift a combined $34,000 per person in 2023 without making a taxable gift.
Combined Gift and Estate Tax Exemption
Another significant change, effective January 1, 2023, is the combined gift and estate tax exclusion increase. It is currently $12.06 million, increasing to $12.92 million ($25.84 million for a married couple). The combined gift and estate tax exemption is the total amount of gifts a person may make during their lifetime, including transfers made at death, before being on the hook for gift or estate tax.
Those who have used up their lifetime exclusions as of December 31, 2022, will now be able to gift another $860,000 tax-free starting January 1, 2023. Married couples in this situation may make additional gifts of $1.72 million.
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