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Investment Planning |
2009 Tax Law and Mortgage Changes
Here's a summary of new tax rules to help you plan for 2009.
FDIC & Federal Credit Union Insurance
The deposit insurance limit at banks and credit unions has been temporarily increased from $100,000 to $250,000 per account, through December 31, 2009.
Federal Estate Tax
Starting January 1, 2009, the estate tax exemption is $3.5 million, up from $2 million in 2008.
Gift Tax Exclusion
The annual gift tax exclusion is now $13,000, up from $12,000 in 2008.
Required Minimum Distributions Waived for 2009
There has been a temporary waiver of RMDs from retirement accounts for the 2009 tax year. This waiver applies only to individuals over age 70 1/2 who are required to take distributions from their IRAs and other retirement plans.
Home Loans
Beginning on January 1, 2009, if the outstanding balance of your home mortgage is less than $625,500, you may qualify for a conforming loan. If your current interest rate is higher than today's attractive conforming loan rates, consider combining your primary mortgage and HELOC (only if used for the purchase or improvement of your home) into one mortgage. Loans of at least $625,500 are considered jumbo; today, interest rates on jumbo loans are much higher than those of conforming loans.
Tips Disclaimer
These tips contain information that may change over time as a result of new tax legislation. Although we make efforts to keep this information current, you should check with your tax advisor before taking action based upon any information contained in these tips.