Most pension plan limitations won’t change in 2016
The Internal Revenue Service announced pension plan limitations will not change in 2016, because the modest increase in the cost-of-living index did not meet thresholds for adjustment.
The adjusted gross income phase-out ranges for those covered by workplace retirement plans who make contributions to Roth IRAs increased slightly.
Below is a chart you can use to compare 2016 and 2015 rates. Please be sure to contact your WK advisor if you have questions about any of these limits.
OTHER STORIES FOR YOU
WHY CONSIDER AN IRREVOCABLE TRUST? A variety of estate planning tools are available these days, but one we see used frequently is an irrevocable trust. This tool allows you to gift assets in the way you choose, provides tax benefits, and allows for creditor protection. And, irrevocable trusts can be used for reasons other than estate planning, so it might be helpful even if you don’t consider yourself especially wealthy.
HOW THE AMT WORKS. Have you been required to pay the Alternative Minimum Tax, or AMT, in the past? It’s a tool used to ensure taxpayers with higher incomes pay at least a minimum amount of income tax. If you’ve been subject to the AMT in the past, or might be in the future, read on for a primer on the subject.
TAX BENEFITS OF CHARITABLE DONATIONS. Whether you are donating cash, stock, used goods or your time, charitable donations provide a benefit to the recipient organizations and the community. As a bonus, they can help reduce your taxable income. We’ve summarized some basic information you need to know when making charitable donations.