2016 IRS Inflation-Adjusted Tax Figures

Every year, the IRS releases inflation-adjustments  that impact Hirtle Callaghan’s Family clients.  The IRS recently released their inflation-adjustments for 2016.  As a result of the current low inflation environment, it is not surprising that these figures will not increase much, if at all, from 2015 to 2016. In particular, the 2016 figures are as follows:  

  • Gift Tax Exemption:  $14,000 (same as 2015)
  • Unified Credit:  $5,450,000 (up $20,000 from 2015)
  • Top 39.6% Income Tax Rate:  $415,050 single/$466,950 joint (up $1,850/$2,100 from 2015)
  • Standard Deduction:  $6,300 single/$12,600 joint (same as 2015)
  • Personal Exemption:  $4,050 (up $50 from 2015)
  • AMT Exemption:  $53,900 single/$83,800 joint (up $300/$400 from 2015)
  • Contribution Limit for 401(k)/403(b)/457 Plans:  $18,000 (same as 2015)
  • Catch-Up Contribution Limit (Age 50+) for 401(k)/403(b)/457 Plans:  $6,000 (same as 2015)
  • Income Limit for Full IRA Deduction:  $61,000 single/$98,000 joint (same as 2015)
  • Income Limit for Full Roth IRA Contribution:  $117,000 single/$184,000 joint (up $1,000 from 2015)
  • Defined Benefit Plan Annual Benefit Limit:  $210,000 (same as 2015)

Please contact us for more information about how Hirtle Callaghan works with our Family clients.

Alan E. Weissberger, Esquire

Alan is a Portfolio Manager with Hirtle Callaghan where he is primarily responsible for the financial, estate and tax planning for individual and institutional clients.  Prior to joining Hirtle Callaghan, Alan worked most recently for the law firm of Morgan Lewis and Bockius, LLP where he was an Associate in the Personal Law Practice Group.  Alan earned a B.S. (High Honors) in Accounting from The Pennsylvania State University and a J.D. (Magna Cum Laude) from the University of Pittsburgh School of Law.  Prior to attending law school, Alan served as a Senior Auditor at Deloitte & Touche where he successfully passed the Uniform CPA Examination.

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