October 22, 2015
The IRS has just announced that there will be limited to no adjustments for key inflation-adjusted figures for the calendar year 2016 in Rev. Proc. 2016-53, 2015-44 IRB.
For retirement plan purposes:
Cost of living adjustments (“COLA”)for purposes of determining the factors necessary to meet the testing requirements for all qualified employee benefit plans and individual retirement accounts, all 2016 limits will remain constant.
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For gift and estate tax planning purposes:
The basic exclusion amount under §2010(c)(3) for purposes of calculating the unified credit against estate tax, is increased to $5,450,000 for calendar year 2016, an increase from 5,430,000 in calendar year 2015.
The present interest annual exclusion under §2503(b) remains constant at $14,000 for calendar year 2016.