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).
IRAs
The combined annual limit on contributions to traditional and Roth IRAs increased to $6,000 in 2019 (up from $5,500 in 2018), with individuals age 50 and older able to
contribute an additional $1,000. For individuals who are covered by a workplace
retirement plan, the deduction for contributions to a traditional IRA is
phased out for the following modified adjusted gross income (AGI) ranges:
|
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/HOH |
$120,000 - $135,000 |
$122,000 - $137,000 |
| MFJ |
$189,000 - $199,000 |
$193,000 - $203,000 |
| 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 |
$12,000 |
$12,200 |
| HOH |
$18,000 |
$18,350 |
| MFJ |
$24,000 |
$24,400 |
| 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)
|
2018 |
2019 |
| Maximum AMT exemption amount |
| Single/HOH |
$70,300 |
$71,700 |
| MFJ |
$109,400 |
$111,700 |
| MFS |
$54,700 |
$55,850 |
| Exemption phaseout threshold |
| Single/HOH |
$500,000 |
$510,300 |
| MFJ |
$1,000,000 |
$1,020,600 |
| MFS |
$500,000 |
$510,300 |
| 26% rate on AMTI* up to this amount, 28% rate on AMTI above this amount |
| MFS |
$95,550 |
$97,400 |
| All others |
$191,100 |
$194,800 |
| *Alternative minimum taxable income |
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