The IRS has announced two important changes in 2018 that will help you give, and help you plan for retirement. The IRS has increased the annual amount a taxpayer may gift to another person, free of estate or gift tax. After remaining at $14,000 for several years, the IRS has increased the amount in 2018 to $15,000 per year.
Additionally, the IRS has increased the amount a taxpayer may put into a retirement plan in 2018. This adjustment for inflation increases the limit for elective deferrals for 401(k), 403(b), and SEP plans to $18,500 in 2018.
For more information on IRS rate changes for 2018, click here.