Part of a SMART investing strategy is investing in tax-deferred accounts. Below are the updated contribution limits for your retirement accounts for 2019. Make sure to take advantage of the tax benefits! Click here for more tax information, strategies, and benefits.
Type of Account |
2018 |
2019 |
Traditional or Roth IRA | $5,500 | $6,000 |
Roth IRA – Phased out range and maximum income limit for singles and heads of household | $117,000 to $132,000 | $116,000 to $131,000 |
Roth IRA – Phased out range and maximum income limit for married couples filing jointly | $184,000 to $194,000 | $183,000 to $193,000 |
Traditional IRA & Covered By Workplace Retirement Plan – Phased out deductions for singles and heads of households |
$61,000 to $71,000 | $61,000 to $71,000 |
Traditional IRA & Covered By Workplace Retirement Plan – Phased out deductions for married couples filing jointly |
$98,000 to $118,000 | $98,000 to $118,000 |
Traditional IRA – Phased out deductions for singles and heads of households | $184,000 to $194,000 | $183,000 to $193,000 |
Traditional IRA – Phased out deductions for married couples filing jointly | $98,000 to $118,000 | $98,000 to $118,000 |
Roth or Traditional IRA: Catch-Up Contributions over 50 | $1,000 | $1,000 |
SEP IRA (Self-Employed), Solo 401(k): or 25% of salary, whichever is smaller. | $53,000 | $53,000 |
Solo 401(k): Catch-Up Contributions over 50 | $1,000 | $1,000 |
SEP IRA (Self-Employed), Solo 401(k) – Maximum Compensation Limit | $265,000 | $265,000 |
SEP IRA Employee Eligibility: The maximum amount of income that an employer can require for employee SEP IRA plan eligibility remains unchanged at $600. | ||
SIMPLE IRA Employee Eligibility: The maximum amount of income that an employer can require for employee SIMPLE IRA plan eligibility remains unchanged at $5,000 | ||
Defined Benefit Plans | $210,000 | $210,000 |
SIMPLE IRA (Savings Incentive Match PLan) | $12,500 | $12,500 |
SIMPLE IRA: Catch-Up Contributions over 50 | $3,000 | $3,000 |
401(k), 403(b), 457, TSP | $18,000 | $18,000 |
401(k), 403(b), 457, TSP: Catch-Up Contributions over 50 | $6,000 | $6,000 |
Highly Compensated Employee Determination | $120,000 | $120,000 |
Saver’s Credit (Retirement Savings Contribution Credit) for low and moderate income workers – Married filing jointly | $61,000 | $61,000 |
Saver’s Credit (Retirement Savings Contribution Credit) for low and moderate income workers – Heads of Household | $45,750 | $45,000 |
Saver’s Credit (Retirement Savings Contribution Credit) for low and moderate income workers – Singles and married filing separately | $30,500 | $30,000 |
2016 Tax Rates: Single Filing Individual Return (other than surviving spouses and unmarried heads of households) |
|
If Taxable Income Is: | The Tax Rate Is: |
Not over $9,275 | 10% of taxable income |
Over $9,275 but not over $37,650 | $927.50 plus 15% of the excess over $9,275 |
Over $37,650 but not over $91,150 | $5,183.75 plus 25% of the excess over $37,650 |
Over $91,150 but not over $190,150 | $18,558.75 plus 28% of the excess over $91,150 |
Over $190,150 but not over $413,350 | $46,278.75 plus 33% of the excess over $190,150 |
Over $413,350 but not over $415,050 | $119,934.75 plus 35% of the excess over $413,35 |
Over $415,050 | $120,529.75 plus 39.6% of the excess over $415,050 |
2016 Tax Rates: Married Filing Individual Return | |
If Taxable Income Is: | The Tax Rate Is: |
Not over $18,550 | 10% of taxable income |
Over $18,550 but not over $75,300 | $1,855 plus 15% of the excess over $18,550 |
Over $75,300 but not over $151,900 | $10,367.50 plus 25% of the excess over $75,300 |
Over $151,900 but not over $231,450 | $29,517.50 plus 28% of the excess over $151,900 |
Over $190,150 but not over $413,350 | $51,791.50 plus 33% of the excess over $231,450 |
Over $413,500 but not over $466,950 | $111,818.50 plus 35% of the excess over $413,350 |
Over $466,950 | $130,578.50 plus 39.6% of the excess over $466,950 |
2016 Tax Rates: Standard Deduction | |
Unmarried individuals (other than surviving spouses and heads of households): $6,300 | |
Married couples filing joint returns and surviving spouses: $12,600 | |
Heads of households: $9,300 | |
Married Individuals filing separate returns: $6,300 |
2016 Tax Rates: Itemized Deduction Limit | |
Unmarried individuals (other than surviving spouses and heads of households): $259,400 | |
Married couples filing joint returns and surviving spouses: $311,300 | |
Heads of households: $285,350 | |
Married Individuals filing separate returns: $155,650 |
2016 Tax Rates: Personal Exemption – The personal exemption for tax year 2016 is $4,050. The adjusted gross incomes phase-out range begins and ends as follows: | |
Unmarried individuals (other than surviving spouses and heads of households): $259,400 to $381,900 | |
Married couples filing joint returns and surviving spouses: $311,300 to $433,800 | |
Heads of households: $285,350 to $407,850 | |
Married Individuals filing separate returns: $155,650 to $216,900 |
2016 Tax Rates: Alternative Minimum Tax (exemption amounts are) | |
Unmarried individuals: $53,900 | |
Married couples filing joint returns and surviving spouses: $83,800 | |
Married individuals filing separate returns: $41,900 | |
The excess taxable income above which the 28% tax rate applies is: | |
Married individuals filing separate returns: $93,150 | |
Joint returns and unmarried individuals (other than surviving spouses): $186,300 |
2016 Tax Rates: Earned Income Credit | |
For the 2016 earned income credit, Revenue Procedure 2015-53 has a table providing maximum income limits and credit amounts, along with phase-out thresholds, by filing categories and numbers of qualifying children.
For example, the maximum earned income credit amount is $6,269 for taxpayers filing jointly who have 3 or more qualifying children, phasing out completely when adjusted gross income (or, if greater, earned income) reaches $53,505. |
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