Investment and Finance
The most frequently asked tax questions related to Investment and Finance
Defined benefit plan
Asked Saturday, November 22, 2014 by an anonymous userCPA Answer:
Effective January 1, 2016, the limitation on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) remains at $210,000.
For a participant who separated from service before January 1, 2016, the limitation for defined benefit plans under Section 415(b)(1)(B) is computed by multiplying the participant's compensation limitation, as adjusted through 2015, by 1.0011.
For a participant who separated from service before January 1, 2016, the limitation for defined benefit plans under Section 415(b)(1)(B) is computed by multiplying the participant's compensation limitation, as adjusted through 2015, by 1.0011.
Defined contribution plans
Asked Saturday, November 22, 2014 by an anonymous userCPA Answer:
The limitation for defined contribution plans under Section 415(c)(1)(A) remains unchanged at $53,000.
The limitation for defined contribution plans under Section 415(c)(1)(A) is increased in 2015 from $52,000 to $53,000.
The limitation for defined contribution plans under Section 415(c)(1)(A) is increased in 2015 from $52,000 to $53,000.
SEP IRA limits
Asked Saturday, November 22, 2014 by an anonymous userCPA Answer:
Employers can contribute up to a quarter of the salaries that each employee earns (25%)up to an annual maximum limit. For 2017, that maximum will be $54,000, up $1,000 from its 2016 level. That's the first rise in the SEP IRA limit since 2015,
For self-employed. the 25% refers to the self-employed worker's "net earnings" from the business. The net result of the math is that the 25% limitation on "net earnings" works out to 20% of your adjusted profit after the self-employment tax adjustment
For self-employed. the 25% refers to the self-employed worker's "net earnings" from the business. The net result of the math is that the 25% limitation on "net earnings" works out to 20% of your adjusted profit after the self-employment tax adjustment
Employee compensation - special election
Asked Saturday, November 22, 2014 by an anonymous userCPA Answer:
In 2016, the dollar amount under Section 430(c)(7)(D)(i)(II) used to determine excess employee compensation with respect to a single-employer defined benefit pension plan for which the special election under Section 430(c)(2)(D) has been made is increased from $1,101.000 to $1,106,000..
Individual Retirement Accounts
Asked Saturday, November 22, 2014 by an anonymous userCPA Answer:
The limit on annual contributions to an Individual Retirement Arrangement (IRA) remains unchanged at $5,500. The additional catch-up contribution limit for individuals aged 50 and over is $1,000 for a maximum amount of $6,500.
Maximum IRA contribution allowed in 2014
Asked Wednesday, January 15, 2014 by an anonymous userCPA Answer:
You can contribute up to $5,500 ($6,500 if you are 50 or older) provided you have at least $5,500 / 6,500 of wages, salary or net self-employment earnings in 2014 and in the case of a traditional IRA (deductible IRA) , you have not reached age 70 1/2 by the end of the year.
401(k), 403(b), 457 and TSP plans - Maximum Contribution limits
Asked Wednesday, January 15, 2014 by an anonymous userCPA Answer:
The limit on employee elective deferrals is $18,000 for 2016.
The catch up contribution limit for employees 50 and over remains unchanged at $6,000.
Generally, all elective deferrals made to all plans in which you participate are aggregated to determine if you have exceeded these limits.
Generally, all elective deferrals made to all plans in which you participate are aggregated to determine if you have exceeded these limits.
Catch-up contribution
Asked Thursday, December 05, 2013 by an anonymous userCPA Answer:
The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans is $6,000, In 2017, the total maximum contribution would be $18,000 plus $6,000 catch up = $24,000.
When did the Net Investment Income Tax take effect ?
Asked Wednesday, August 21, 2013 by an anonymous userCPA Answer:
The Net Investment Income Tax went into effect on Jan. 1, 2013. The NIIT affects income tax returns of individuals, estates and trusts for their first tax year beginning on (or after) Jan. 1, 2013. It does not affect income tax returns for the 2012 taxable year filed in 2013.