Catch-up contributions will be allowed for individuals who are 50 or older. Higher catch-up contributions are permitted for other retirement plans. The top gift tax rate after 2009 will be the same as the top individual income tax rate. The current step-up in basis for property acquired from an estate will end when the estate tax is repealed. In its place will be a basis step-up for a limited amount of assets.
Tax planning becomes more challenging with every new piece of tax legislation.
If you wish to enjoy the maximum benefit from the tax rate cuts and the other tax benefits in the law, you will have to do some tax planning. We want you to get the best tax treatment possible under this new legislation, and we are ready to assist you in making wise tax and financial choices. Please call for details on any provision in the tax law that concerns you or to make an appointment for a more general review of your tax situation. And please watch for additional tax-saving information from us in the upcoming months as we continue to digest and analyze this latest tax law.