Retire Safe & Tax Free - What's New?


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Many changes have been in the works over the past year and 2015 will see a lot of those changes implemented. These changes include things that can impact both your taxes and retirement distribution planning.

Here is a brief recap of some changes that could affect you:

  • The lifetime gift tax exemption has been indexed for inflation and is $5.43 million for 2015.
  • Portability between married couples is permanent - in 2015 a married couple can pass on $10.86 million to their heirs free from federal estate taxes.
  • The annual gift exclusion has not changed and will remain at $14,000 for 2015.
  • IRA rollovers are limited to 1 per year regardless of the number of IRAs you have.
  • Inherited IRAs are not protected in bankruptcy proceedings.
  • Under the Affordable Healthcare Act, the penalty for not having health insurance in 2015 has significantly increased to $325 per adult (or 2% of income, if greater).
  • The Social Security Administration announced a 1.7% increase for benefits in 2015 due to a cost-of-living (COLA) adjustment.
  • Effective as of the 2015 tax year, the Tax Increase Prevention Act of 2014 allows Code Sec. 529 qualified tuition plans to permit investment direction by an account contributor or designated beneficiary up to two times per year.
  • As of January 1, 2015, when qualified plan participants choose to direct their retirement plan distribution to go to multiple destinations, the amounts will be treated as a single distribution for allocating pre-tax and after tax basis. Previously, if such a distribution were split, each destination of that retirement plan distribution was considered a separate distribution.

Contact: Marc H. Weiss, Archer Weiss Insurance and Financial Services

(818) 610-8560