What IS our administration thinking about estate tax? What to look forward to in 2015!
Recently the Administration released its fiscal year 2015 revenue proposals that will affect taxpayers. The following summarizes some of the items:
(1). Exemption of IRA owners of having to take minimum required distributions after 70 1/2 if their IRA benefits do not exceed $100,000 (inflation adjusted).
(2) Requiring owners of Roth IRAs to take distributions after they reach 70 1/2.
(3) Allowing NON spouse beneficiaries of IRAs to roll over distributions to an inherited IRA within 60 days of the distribution.
(4) REQUIRING a beneficiary of an IRA to take benefits over 5 years with certain exceptions.
(5) Proposing in 2018 to roll back the applicable exclusion amount back to 3.5 million from 5.340 million in 2014.
(6) Changing the estate tax consequences of a sale to an intentionally defective grantor trust.
(7) GRAT would be limited to 10 years.
(8) Generation skipping transfer tax exemptions would expire after 90 years.
Advice: These are just a few of the proposals and obviously it is unknown whether all or if any will pass. Just put these on your radar and remember to discuss with your advisor. Planning techniques such as GRATS and sales to defective trusts are very valuable and if you can use these you should discuss activating such planning techniques prior to 2015.
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