Key Retirement and Tax Numbers for 2019

Every year, the Internal Revenue Service announces cost-of-living adjustments that affect contribution limits for retirement plans and various tax deduction, exclusion, exemption, and threshold amounts. Here are a few of the key adjustments for 2019

Employer Retirement Plans

  • Employees who participate in 401(k), 403(b), and most 457 plans can defer up to $19,000 in compensation in 2019 (up from $18,500 in 2018); employees age 50 and older can defer up to an additional $6,000 in 2019 (the same as in 2018).
  • Employees participating in a SIMPLE retirement plan can defer up to $13,000 in 2019 (up from $12,500 in 2018), and employees age 50 and older can defer up to an additional $3,000 in 2019 (the same as in 2018).

IRA's

 

2018

2019

Single/head of household (HOH)

$63,000 - $73,000

$64,000 - $74,000

Married filing jointly (MFJ)

$101,000 - $121,000

$103,000 - $123,000

Married filing separately (MFS)

$0 - $10,000

$0 - $10,000


Note:  The 2019 phaseout range is $193,000 - $203,000 (up from $189,000 - $199,000 in 2018) when the individual making the IRA contribution is not covered by a workplace retirement plan but is filing jointly with a spouse who is covered. The modified AGI phaseout ranges for individuals to make contributions to a Roth IRA are:

 

2018

2019

Single/head of household (HOH)

$120,000 - $135,000

$122,000 - $137,000

Married filing jointly (MFJ)

$189,000 - $199,000

$193,000 - $203,000

Married filing separately (MFS)

$0 - $10,000

$0 - $10,000

Estate and Gift Tax

  • The annual gift tax exclusion for 2019 is $15,000, the same as in 2018. 
  • The gift and estate tax basic exclusion amount for 2019 is $11,400,000, up from $11,180,000 in 2018.

Kiddie Tax

Under the kiddie tax rules, unearned income above $2,200 in 2019 (up from $2,100 in 2018) is taxed using the trust and estate income tax brackets. The kiddie tax rules apply to: (1) those under age 18, (2) those age 18 whose earned income doesn't exceed one-half of their support, and (3) those ages 19 to 23 who are full-time students and whose earned income doesn't exceed one-half of their support.

Standard Deduction

2018

2019

Single/head of household (HOH)

$12,000/$18,000

$12,200/$18,350

Married filing jointly (MFJ)

$24,000

$24,400

Married filing separately (MFS)

$12,000

$12,200

Note:  The additional standard deduction amount for the blind or aged (age 65 or older) in 2019 is $1,650 (up from $1,600 in 2018) for single/HOH or $1,300 (the same as in 2018) for all other filing statuses. Special rules apply if you can be claimed as a dependent by another taxpayer.

Alternative minimum tax (AMT)

Maximum AMT exemption amount

2018

2019

Single/head of household (HOH)

$70,000

$71,700

Married filing jointly (MFJ)

$109,000

$111,700

Married filing separately (MFS)

$54,700

$55,850

Exemption phaseout threshold

2018

2019

Single/head of household (HOH)

$500,000

$510,300

Married filing jointly (MFJ)

$1,000,000

$1,020,600

Married filing separately (MFS)

$500,000

$510,300

26% rate on AMTI* up to this amount, 28% rate on AMTI above this amount

2018

2019

Single/head of household (HOH)

$191,100

$194,800

Married filing jointly (MFJ)

$191,100

$194,800

Married filing separately (MFS)

$95,550

$97,400

This information was developed by Broadridge, an independent third party. It is general in nature, is not a complete statement of all information necessary for making an investment decision, and is not a recommendation or a solicitation to buy or sell any security. Investments and strategies mentioned may not be suitable for all investors. Past performance may not be indicative of future results.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2019.


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