Key Numbers for 2016 Business, Estate and Protection Planning
Business Planning 2014 2015 2016
Earnings subject to FICA taxes (taxable wage base):      
  • Maximum annual earnings subject to Social Security taxes
$117,000 $118,500 $118,500
  • Social Security and Medicare combined tax rate
15.30% 15.30% 15.30%
Qualified transportation fringe benefits:      
  • Commuter vehicles and transit pass monthly exclusion amount
$250 $250 $255
  • Qualified parking monthly exclusion amount
$250 $250 $255
  • Qualified bicycle commuting reimbursement fringe benefit (monthly amount)
$20 $20 $20
Standard mileage rate (per mile):      
  • Use of auto for business purposes (cents per mile)
$0.560 $0.575 $0.540
  • Business Planning
    1. Earnings subject to FICA taxes (taxable wage base)
      1. The maximum annual earnings subject to Social Security taxes remained consistent at $118,500 for 2016.
      2. Social Security and Medicare combined tax remained consistent at 15.30%.
    2. Qualified transportation fringe benefits:
      1. The commuter vehicles and transit pass monthly exclusion amount rose from $250 to $255, indicating a $5 net increase for 2016.
      2. The qualified parking monthly exclusion amount rose from $250 to $255, indicating a $5 net increase for 2016.
  • The qualified bicycle commuting reimbursement fringe benefit (monthly amount) remained consistent at $20 for 2016.
  1. Standard mileage rate (per mile):
    1. Use of auto for business purposes decreased from $0.575 to $0.54 per mile for 2016.
Estate Planning 2014 2015 2016
Annual gift exclusion $14,000 $14,000 $14,000
Gift and estate tax basic exclusion amount: $5,340,000 $5,430,000 $5,450,000
Noncitizen spouse annual gift tax exclusion: $145,000 $147,000 $148,000
  • Estate Planning
    1. Annual gift exclusion remained consistent at $14,000 for 2016.
    2. Gift and estate tax basic exclusion amount rose from $5,430,000 to $5,450,000, indicating a $20,000 net increase for 2016.
    3. Noncitizen spouse annual gift tax exclusion rose from $147,000 to $148,000 indicating a $1,000 net increase for 2016.
Protection Planning 2014 2015 2016
Per diem limit: periodic payments for qualified long-term care insurance/certain life insurance $330 $330 $340
Flexible spending account (FSA) for health care–maximum salary reduction contribution $2,500 $2,550 $2,550
Health savings accounts (HSAs)      
  • Family Coverage
$6,550 $6,650 $6,750
  • Annual catch-up contribution limit for individuals age 55 or older
$1,000 $1,000 $1,000

Source: Broadridge, Forefield – http://www.forefield.com

  • Protection Planning
    1. The per diem limit: periodic payments for qualified long-term care insurance/certain life insurance rose from $330 to $340, indicating a $10 net increase for 2016.
    2. Flexible spending account (FSA) for health care—maximum salary reduction contribution remained consistent at $2,550 for 2016.
    3. Health Savings Accounts (HSAs)
      1. The annual contribution limit for family coverage rose from $6,650 to $6,750, indicating a $100 net increase for 2016.
      2. The annual catch-up contribution limit for individuals age 55 or older remained consistent at $1,000 for 2016.

Source: http://www.forbes.com/sites/wadepfau/2016/01/25/key-numbers-for-2016-business-estate-and-protection-planning/

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