Important Tax Information

Social Security Wage Base
2021 $142,800
2020 $137,700
2019 $132,900
Maximum Retirement contributions
401(K) 2021 = $19,500, add'l $6,500 if over age 50
2020 = $19,500, add'l $6,500 if over age 50
2019 = $19,000, add'l $6,000 if over age 50
Simple 2021 = $13,500, add'l $3,000 if over age 50
2020 = $13,500, add'l $3,000 if over age 50
2019 = $13,000, add'l $3,000 if over age 50
IRA (Adjusted Gross Income phase-out ranges apply for tax deduction qualification)
2021 = $6,000, add'l $1,000 if over age 50
2020 = $6,000, add'l $1,000 if over age 50
2019 = $6,000, add'l $1,000 if over age 50
Roth IRA (Adjusted Gross Income phase-out ranges apply)
2021 = $6,000, add'l $1,000 if over age 50
2020 = $6,000, add'l $1,000 if over age 50
2019 = $6,000, add'l $1,000 if over age 50
SEP 2021 = lesser of $58,000 or 25% of employee's compensation
2020 = lesser of $57,000 or 25% of employee's compensation
2019 = lesser of $56,000 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:

2021 lesser of $57,000 or 25% of employee's compensation
2020 lesser of $57,000 or 25% of employee's compensation
2019 lesser of $56,000 or 25% of employee's compensation
Defined Benefit Plan

The annual benefit for a participant under a defined benefit plan cannot exceed:

2021 $230,000
2020 $230,000
2019 $225,000
Auto Standard Mileage Allowances
Business 2021 = 56.0 cents
2020 = 57.5 cents
2019 = 58.0 cents
Medical or Moving 2021 = 16.0 cents
2020 = 17.0 cents
2019 = 20.0 cents
Charitable 2021 = 14.0 cents
2020 = 14.0 cents
2019 = 14.0 cents
Section 179

Maximum Depreciation Deduction:

2020 $1,040,000
2019 $1,020,000
 

Bonus Depreciation

2020 = 100%

2019 = 100%

Health Savings Account (HSA) Contributions
Minimum Maximum Contribution Limit 55+ Contribution
2021 Individual $1,400 $7,000 $3,600 $1,000
Family $2,800 $14,000 $7,200 $1,000
2020 Individual $1,400 $6,900 $3,550 $1,000
Family $2,800 $13,800 $7,100 $1,000
2019 Individual $1,350 $6,750 $3,500 $1,000
Family $2,700 $13,500 $7,000 $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.