The Internal Revenue Service (IRS) recently announced several important tax changes to certain limits for tax year 2013.
The Internal Revenue Service (IRS) recently announced several important changes to certain limits for tax year 2013. These changes mean that you can invest more money without having to worry about paying taxes on gains until the money is withdrawn during retirement. The annual contribution limit on 401(k) plans increases by $500 to $17,500. The annual exclusion for gifts also increases, meaning that you can give up to $14,000 per person as a gift next year without being liable for gift taxes. This a common tool used for estate planning. If the gifts are to pay for a child’s or grandchild’s college education you can put up to 5 years worth of exclusions ($70,000) into a 529 plan at once.
About Mike Periu
Mike is a seasoned executive with experience in small business finance and management. He is the founder of Proximo, LLC a leading provider of corporate, consumer and small business education and training services with an emphasis on finance and technology.
Mike Periu is also a leading national voice for individual empowerment through financial education and entrepreneurship. He has been interviewed over 500 times in national and international media, including NBC, Univision, CNN en español, Telemundo, HITN, TVE, RTE, SBS, MegaTV and others.
Mike writes regularly for American Express OpenForum, Yahoo! Finanzas and is a Huffington Post contributor.
Mike has degrees in Finance and International Business from Georgetown University. He is on the Board of Directors of the Council for Economic Education and was a Fellow at the Kauffman Foundation’s Labs for Enterprise Creation.
