CONNECT

Address:

9825 W Sample Rd Suite 206
Coral Springs, FL 33065-4040

Phone:

954.340.1588, 800.780.8835

Fax/Other:

954.340.1865

Quick Facts

Indexed Benefit Limits
 

Limit 2017 2018
401(k) elective deferral limit $18,000 $18,500
401(k) participants age 50 or older may defer an additional: $ 6,000 $ 6,000
401 (k) total deferral limit $24,000 $24,500
403(b) TSA elective deferral limit $18,000 $18,500
403(b) TSA elective catch up deferral limit $  3,000 $  3,000
403(b) elective participants age 50 or older may defer an additional: $  6,000 $  6,000
403 (b) total deferral limit including the elective catch up $27,000 $27,500
Roth and Traditional IRA deferral limit $  5,500 $  5,500
IRA participants age 50 or older may defer an additional: $  1,000 $  1,000
Roth and Traditional IRA total deferral limit $  6,500 $  6,500
Simple Plan elective deferral limit $12,500 $12,500
Simple participants age 50 or older may defer an additional: $  3,000 $  3,000
Simple Plan elective total deferral limit $15,500 $15,500
Coverdell  Savings Account (Educational IRA) deferral limit $ 2,000 $ 2,000

IRA Deduction Phaseout

 

Roth IRA

Traditional IRA
Maximum annual contribution for 2018 The lesser of individual's compensation or $5,500.  Spousal IRA is the lesser of joint filer compensation or $5,500. The maximum combined Roth and traditional IRA contribution  is $5,500.  Participants age 50 and older may contribute an additional $1,000.
Age Limit None Until 70.5 for tax year
Adjusted gross income, or AGI, limits for contribution Allowed contributions begin to phase out at AGI of  $120,000 for individual, head of household,  married filing separately or $189,000 for joint filer. All income levels are eligible to contribute - not all can deduct.
Income limits for deductibility No tax deduction
Potential tax-free distributions replace the benefit of taking a tax deduction today

 

If neither you nor your spouse participate in an employer--qualified retirement plan, the contribution is fully deductible, regardless of income level.

If you or your spouse actively participate in an employer qualified retirement plan like a TSA/ 403 (b) plan then a deduction is possible for the following person up to the following income levels:
 

For a 2018 plan participant:
The size of the deductible contribution begins to reduce at AGI of  $63,000 for single person or $101,000 for joint filer.

The IRA phaseout for the spouse who is not an active participant in an employer sponsored retirement plan begins  $189,000.

Withdrawal taxation No income or penalty taxes when:
•removing contributions only or

•you've held a Roth account for five tax years and one of the following:
 •have obtained age 59.5, become disabled or deceased, or
•first time home buyer-lifetime limit of $10,000  
Ordinary income tax but no penalty tax for:
•certain first-time home purchases -lifetime limit of $10,000,
•certain higher education expenses
•when you reach age 59.5, become disabled or deceased,
•certain medical expenses,
•certain health insurance premiums and
•certain substantially equal periodic payments 
Required distributions Not during lifetime Required minimum distributions at age 70.5


Traditional IRAs may be converted to Roth IRAs. A conversion contribution is deemed taxable. Consult your financial or tax advisor for more information on how the specific IRA rules may affect your situation.


Net Investment Income Tax
Additional medicare tax where income exceeds $200,000 ($250,000 married, joint)
Additional tax on excess of earned income            0.9%
Additonal tax on net investment income 2                     3.8%

1. Total Employee Medicare Tax is 1.45% + 0.9% = 2.35%
2. Including interest, dividends, capital gains and annuity distributions



Long Term Care
The deductibility of premiums paid for qualified long term care contracts is limited to a dollar amount, based on the age of the covered individual at the end of the tax years. These amounts are adjusted for inflation.

Age 2017 Limitation 2018 Limitation
40 or less $410 $420
41 - 50 $770 $780
51 - 60 $1,530 $1,560
61 -70 $4,090 $4,160
71 or more $5,110 $5,200


There is also a per diem limit on the amount of benefits received from a qualified long term care contract that may be excluded from income. The daily limit for 2017 is 360. The daily limit for 2018 is $360.


Medicare 2018 Amounts
 

Part A Premium

$422.00

Most people do not pay a monthly premium for Part A. Deductibles and co-pays are reset each benefit period. A benefit period  begins the day you go to a hospital or skilled nursing facility. The benefit period ends when you haven't received any hospital care (or skilled care in a SNF) for 60 days in a row. If you go into the hospital after one benefit period has ended, a new benefit period begins. You must pay the inpatient hospital deductible for each benefit period. There is no limit to the number of benefit periods you can have.

Deductible  1-60 days $1,340
Co-payment 61-90 days $335 a day maximum  of  $10,050
Co-payment 91-150 days $670  a day maximum of  $40,200
Co-payment 151 days or more You Pay All Costs
Skilled Nursing Confinement First 20 Days You receive 100% Coverage
Co-payment Days  21-100  $167.50 a day maximum of $13,400
When you are hospitalized for at least 3 days and enter a Medicare approved skilled nursing facility within 30 days after hospital discharge and are receiving skilled nursing care.
After 100 Days You Pay All Costs
Part B Monthly Premium
About 70% of Medicare beneficiaries are protected under the "hold harmless" rule. Medicare premiums for existing beneficiaries can't increase faster that their Social Security benefits. The average Medicare beneficary pays $109.00 per month for Medicare Part B. The premiums reflected below are for first time enrollees, in 2018. Generally, the tax return you filed in 2017 (based on 2016 income) will be used to determine if you will pay an income-related premium in 2018.

Individual Filer                                                     Joint Filer

Less than $85,000 Less than $170,000 $134.00 monthly
$85,001 - $107,000 $170,001 - $214,000 $187.50 monthly
$107,001 - $160,000 $214,001 - $320,000 $267.90 monthly
$160,001 - $214,000 $320,001 - $428,000 $348.30 monthly
More than $214,000 More than $428,000 $428.60 monthly
Part B Deductible $183.00 annually

Click here for information on how to apply for Medicare Online
You may also visit a local Social Security Office or call Monday to Friday 7AM-7PM at  (800) 772-1213

Click here for more information on Medicare premiums.

Medicare Part D Prescription Drug Coverage Information



Estate and Gift Tax Exclusion Amounts
 

  Exclusion Amount Highest Estate and Gift Tax Rate
2002 1,000,000 50%
2003 1,000,000 49%
2004 1,500,000 48%
2005 1,500,000 47%
2006 2,000,000 46%
2007 2,000,000 45%
2008 2,000,000 45%
2009 3,500,000 45%
2010 N/A (taxes repealed) top individual rate under the bill (gift tax only)
2011 5,000,000 35%
2012 5,120,000 35% 
2013  5,250,000  40%
2014 5,340,000 40%
2015 5,430,000 40%
2016 5,450,000 40%
2017 5,490,000 40%
2018 11,200,000 40%
Annual Gift Tax Exclusion $15,000
 
 
Source: Broadridge Investor Communications and  Medicare.gov
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