Happy New Year to everyone.  Today’s top news concerns the last-minute legislation Congress has passed to avoid going over the “fiscal cliff”. We begin with an article that discusses the key provisions of the new law.While the debate about income taxes seems largely settled, Congress has delayed negotiations on spending cuts for two months. These will have to be decided upon in February as part of the process of raising the national debt ceiling of $16.4 trillion.  Our next article, from the Journal of Accountancy, takes a more comprehensive look into the new tax provisions.  We wrap this week up with some news about the increases in the amounts you can save in 401(k) and IRA accounts in 2013.  The limits have increased for both of these types of plans.

Congress Passes Legislation To Avoid The “Fiscal Cliff” – The bill passed by Congress addresses income taxes but deferred for two months the issue of spending cuts.  While it averts most of the immediate pain, the legislation is a small step toward controlling the Federal deficit. This will be debated in February as Congress discusses raising the $16.4 trillion debt limit. Boomberg summarizes some of the key provisions in the bill that passed yesterday. http://www.bloomberg.com/news/2013-01-02/u-s-house-passes-budget-bill-averts-most-tax-increases.html

AICPA Summary Of The “Fiscal Cliff” Tax Provisions – The Fiscal Cliff Legislation (officially the American Tax Payer Relief Act) contains a huge number of tax provisions.  This article in the Journal of Accountancy provides a comprehensive summary of the provisions. http://www.journalofaccountancy.com/News/20137097.htm

IRS Increases The Amount You Can Save In A 401(k) Or IRA In 2013 – The annual limit on 401(k) savings plans goes from $17,000 to $17,500 and the cap for conventional and Roth IRAs rises from $5,000 to $5,500 for 2013.  For people 50 years old, the additional “catch-up” amount allowed will remain the same. http://www.washingtonpost.com/business/economy/irs-raising-limits-on-retirement-contributions-for-2013/2012/12/26/654084aa-4de5-11e2-8b49-64675006147f_story.html?hpid=z5

We hope you enjoy reading these articles along with us and that you find them informative.  Please forward this to your friends and family.

John R. Day and Bill Ennis


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