Important Tax Information
Social Security Wage Base
| 2019 | $132,900 |
|---|---|
| 2018 | $128,400 |
| 2017 | $127,200 |
Maximum Retirement contributions
| 401(K) |
2019 = $19,000, add'l $6,000 if over age 50 2018 = $18,500, add'l $6,000 if over age 50 2017 = $18,000, add'l $6,000 if over age 50 |
|---|---|
| Simple |
2019 = $13,000, add'l $3,000 if over age 50 2018 = $12,500, add'l $3,000 if over age 50 2017 = $12,500, add'l $3,000 if over age 50 |
| IRA | (Adjusted Gross Income phase-out ranges apply for tax deduction qualification) 2019 = $6,000, add'l $1,000 if over age 50 2018 = $5,500, add'l $1,000 if over age 50 2017 = $5,500, add'l $1,000 if over age 50 |
| Roth IRA | (Adjusted Gross Income phase-out ranges apply) 2019 = $6,000, add'l $1,000 if over age 50 2018 = $5,500, add'l $1,000 if over age 50 2017 = $5,500, add'l $1,000 if over age 50 |
| SEP |
2019 = lesser of $56,000 or 25% of employee's compensation 2018 = lesser of $55,000 or 25% of employee's compensation 2017 = lesser of $54,000 or 25% of employee's compensation |
Defined Contribution Plan
Defined contribution plan's annual contributions and other additions (excluding earnings) to the account of a participant cannot exceed:
| 2019 | lesser of $56,000 or 25% of employee's compensation |
|---|---|
| 2018 | lesser of $55,000 or 25% of employee's compensation |
| 2017 | lesser of $54,000 or 25% of employee's compensation |
Defined Benefit Plan
The annual benefit for a participant under a defined benefit plan cannot exceed:
| 2019 | $280,000 |
|---|---|
| 2018 | $220,000 |
| 2017 | $215,000 |
Auto Standard Mileage Allowances
| Business |
2019 = 58.0 cents 2018 = 54.5 cents 2017 = 53.5 cents |
|---|---|
| Medical or Moving |
2019 = 20.0 cents 2018 = 18.0 cents 2017 = 17.0 cents |
| Charitable |
2019 = 14.0 cents 2018 = 14.0 cents 2017 = 14.0 cents |
Section 179
Maximum Depreciation Deduction:
| 2019 | $1,000,000 |
|---|---|
| 2018 | $1,000,000 |
| 2017 | $510,000 |
Bonus Depreciation
2018 = 100%
Health Savings Account (HSA) Contributions
| Minimum | Maximum | Contribution Limit | 55+ Contribution | ||
|---|---|---|---|---|---|
| 2019 | Individual | $1,350 | $6,750 | $3,500 | $1,000 |
| Family | $2,700 | $13,500 | $7,000 | $1,000 | |
| 2018 | Individual | $1,350 | $6,650 | $3,450 | $1,000 |
| Family | $2,700 | $13,300 | $6,900 | $1,000 | |
| 2017 | Individual | $1,300 | $6,550 | $3,400 | $1,000 |
| Family | $2,600 | $13,100 | $6,750 | $1,000 |
What is HSA?
A health savings account (HSA) is a tax-favored savings account created for the purpose of paying medical expenses.
- Tax-deductible
Contributions to the HSA are 100% deductible (up to the legal limit) — just like an IRA. - Tax free
Withdrawals to pay qualified medical expenses are never taxed. - Tax-deferred
Interest earnings accumulate tax-deferred, and if used to pay qualified medical expenses, are tax-free. - HSA money is yours to keep
Unlike a Flexible Spending Account, unused money in your HSA isn't forfeited at the end of the year; it continues to grow, tas deferred.
Go to the IRS website for additional information on an HSA.
Any U.S. tax advice contained in the body of this web site was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.