Earlier, IRS had announced that there would be no changes to the IRA and employer plan inflation adjusted amounts for 2018. That is good news for IRA custodians, plan administrators and taxpayers. No adjustments will have to be made for 2018, contributions and/or deferrals to employer plans and IRAs.
Most other inflation adjusted amounts also remain unchanged such as tax bracket amounts. One of the items that has changed is the estate tax exemption amount. Originally announced as being $11,200,000, double the exemption amount that would have been used under the old law, after recalculation the exemption amount for 2018 will be $11,180,000. That amount is also the lifetime gift tax exemption amount and the generation skipping tax exemption amount.
The estate and gift tax exemption amounts are portable. For a married couple who both die in 2018, that will bring their total exemption amount up to $22,360,000. The generation skipping exemption is not portable.
There was also a change in the contribution limits for HSA accounts. The limit for family contributions, under age 55, is now $6,850 and for those individuals age 55 and older it is now $7,850.