Business Planning: IRS Releases 2014 Inflation Adjustments

• Tuesday, November 5, 2013
• Category: Business & Corporate Law

The IRS released various inflation adjustments for 2014 (IR-2013-86; IR-2013-87; Rev. Proc. 2013-35, 2013-47 I.R.B.__(Nov. 18, 2013)), including:

• Gift Tax Exemption: $14,000 (same as 2013)
• Unified Credit: $5,340,000 (up $90,000 from 2013)
• Top 39.6% Income Tax Rate: $406,750 single/$457,600 joint (up $6,750/$7,600 from 2013)
• Standard Deduction: $6,200 single/$12,400 joint (up $100/$200 from 2013)
• Personal Exemption: $3,950 (up $50 from 2013)
• AMT Exemption: $52,800 single/$82,100 joint (up $900/$1,300 from 2013)
• Contribution Limit for 401(k)/403(b)/457 Plans: $5,500 (same as 2013)
• Catch-Up Contribution Limit (Age 50+) for 401(k)/403(b)/457 Plans: $5,500 (same as 2013)
• Income Limit for Full IRA Deduction: $60,000 single/$96,000 joint (up $1,000 from 2013)
• Defined Benefit Plan Annual Benefit Limit: $210,000 (up $5,000 from 2013)

Reference: November 1, 2013 in IRS News; Tax Prof Blog.

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