The IRS releases 2003 cost-of-living adjustments related to benefit and contribution limits for qualified retirement plans ( www.irs.gov/pub/irs-news/ir02-111.pdf ). Many such savings caps are not changing this year because the increase in the cost-of-living index fell below the statutory thresholds that otherwise would trigger their adjustment. However, several will increase this year. The limitation under section 402(g)(1) on the exclusion for elective deferrals rises to $12,000 from $11,000, affecting contributions to 401(k) plans and the federal government’s thrift savings plans.
Where to find March’s flipbook issue
The Journal of Accountancy is now completely digital.
Get Clients Ready for Tax Season
This comprehensive report looks at the changes to the child tax credit, earned income tax credit, and child and dependent care credit caused by the expiration of provisions in the American Rescue Plan Act; the ability e-file more returns in the Form 1040 series; automobile mileage deductions; the alternative minimum tax; gift tax exemptions; strategies for accelerating or postponing income and deductions; and retirement and estate planning.