Barry M. Kornfeld is the principal of First Financial Tax Group, a Florida tax and insurance services provider. As an experienced financial advisor, Barry Kornfeld strives to keep his clients up-to-date on the regulatory developments that could impact their financial strategies.
Every year, the United States Internal Revenue Service adjusts the thresholds and limitations for retirement plan contributions, tax credits and deductions, and personal exemptions. In 2017, many regulatory requirements affecting retirement planning remained unchanged from 2016. The majority of employees enrolled in 401(k), 403(b), and most 457 plans may still defer a maximum of $18,000 to their retirement accounts, while employees over 50 years old retain the right to defer an additional $1,000. Similarly, the annual IRA contribution limits of $5,500 for individuals under age 50 and $6,000 for those over 50 years old have not changed.
The IRS did make one noteworthy change to its estate and gift tax regulations. While the annual limit for gift tax exclusion holds steady at $14,000, the threshold for gift and estate tax exclusion has risen from $5.45 million in 2016 to $5.49 million in 2017.