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Financial Planner Update – The IRS Announces Inflation Adjustments for 2012

Financial planners should take note that the IRS recently announced inflation adjustments for 2012. In addition to increasing personal exemptions, standard deductions, and widening the tax brackets for income taxes, this will also raise the estate tax applicable exclusion amount to $5,120,000 (up from $5,000,000).

The annual exclusion for gifts, however, will remain unchanged at $13,000. Click here for more details from the IRS. Also announced were changes to pension plan limitations, which may be viewed by clicking here.