Estate, Gift, and Generation-Skipping Transfer Tax<\/strong><\/p>\n

\n
• The annual gift tax exclusion (and annual generation-skipping transfer tax exclusion) for 2023 is $17,000, up from $16,000 in 2022.<\/li>\n
• The gift and estate tax basic exclusion amount (and generation-skipping transfer tax exemption) for 2023 is $12,920,000, up from $12,060,000 in 2022.<\/li>\n<\/ul>\n<\/div>

  Standard Deduction<\/strong>
  \nA taxpayer can generally choose to itemize certain deductions or claim a standard deduction on the federal income tax return. In 2023, the standard deduction is:<\/p>\n

  \n
  • $13,850 (up from $12,950 in 2022) for single filers or married individuals filing separate returns<\/li>\n
  • $27,700 (up from $25,900 in 2022) for married joint filers<\/li>\n
  • $20,800 (up from $19,400 in 2022) for heads of household<\/li>\n<\/ul>\n

    The additional standard deduction amount for the blind and those age 65 or older in 2023 is:<\/p>\n

    \n
    • $1,850 (up from $1,750 in 2022) for single filers and heads of household<\/li>\n
    • $1,500 (up from $1,400 in 2022) for all other filing statuses<\/li>\n<\/ul>\n

      Special rules apply for those who can be claimed as a dependent by another taxpayer.<\/p>\n<\/div>

      <\/span><\/div>

      IRAs<\/strong><\/p>\n

      The combined annual limit on contributions to traditional and Roth IRAs is $6,500 in 2023 (up from $6,000 in 2022), with individuals age 50 or older able
      \nto contribute an additional $1,000. The limit on contributions to a Roth IRA phases out for certain modified adjusted gross income (MAGI) ranges (see chart). For individuals who are active participants in an employer-sponsored retirement plan, the deduction for contributions to a traditional IRA also phases out for
      \ncertain MAGI ranges (see chart). The limit on nondeductible contributions to a traditional IRA is not subject to phaseout based on MAGI.<\/p>\n<\/div>

      Employer-Sponsored Retirement Plans<\/strong><\/p>\n

      \n
      • Employees who participate in 401(k), 403(b), and most 457 plans can defer up to $22,500 in compensation in 2023 (up from $20,500 in 2022); employees age 50 or older can defer up to an additional $7,500 in 2023 (up from $6,500 in 2022).<\/li>\n
      • Employees participating in a SIMPLE retirement plan can defer up to $15,500 in 2023 (up from $14,000 in 2022), and employees age 50 or older can defer up to an additional $3,500 in 2023 (up from $3,000 in 2022).<\/li>\n<\/ul>\n

        Kiddie Tax: Child’s Unearned Income<\/strong>
        \nUnder the kiddie tax, a child’s unearned income above $2,500 in 2023 (up from $2,300 in 2022) is taxed using the parents’ tax rates.<\/p>\n<\/div>

        \n

        Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2023<\/h6>\n

        Non-deposit investment products and services are offered through CUSO Financial Services, LP (\u201cCFS\u201d) a registered broker-dealer(Member FINRA\/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA\/NCUSIF or other wise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. The Credit Union has contracted with CFS for investment services. Atria Wealth Solutions, Inc. (\u201cAtria\u201d) is a modern wealth management solutions holding company. Atria is not a registered broker-dealer and\/or Registered Investment Advisor and does not provide investment advice. Investment advice is only provided through Atria\u2019s subsidiaries. CUSO Financial Services, LP is a subsidiary of Atria.<\/h6>\n<\/div>\n<\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":12099,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[50],"tags":[],"class_list":["post-12096","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investments"],"yoast_head":"\n