Quick Facts
Indexed Benefit Limits
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IRA Deduction Phaseout |
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Roth IRA |
Traditional IRA |
| Maximum annual contribution for 2019 | The lesser of individual's compensation or $6,000. Spousal IRA is the lesser of joint filer compensation or $6,000. The maximum combined Roth and traditional IRA contribution is $6,000. 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 $122,000 for individual, head of household, married filing separately or $193,000 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
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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 2019 plan participant: The IRA phaseout for the spouse who is not an active participant in an employer sponsored retirement plan begins $193,000. |
| 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 income1 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 | 2018 Limitation | 2019 Limitation |
| 40 or less | $420 | $420 |
| 41 - 50 | $780 | $790 |
| 51 - 60 | $1,560 | $1,580 |
| 61 -70 | $4,160 | $4,220 |
| 71 or more | $5,200 | $5,270 |
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 2018 is 360. The daily limit for 2019 is $370.
Medicare 2019 Amounts
Alert- Effective January 1, 2020, Medicare Supplement insurance plans sold to those newly enrolling in Medicare will not be allowed to cover the Part B deductible. Because of this, Plans C, F and HDF will no longer be available to people new to Medicare as of January 1, 2020. Those who already have these plans before January 1, 2020 will be able to keep their plan, as long as premiums are current.
| Part A Premium |
$437.00 |
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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. |
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| Deductible 1-60 days | $1,364 | ||
| Co-payment 61-90 days | $341 a day maximum of $10,230 | ||
| Co-payment 91-150 days | $682 a day maximum of $40,920 | ||
| 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 | $170.50 a day maximum of $13,640 | ||
| 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 | |||
| An estimated 2 million 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 2019. Generally, the tax return you filed in 2018 (based on 2017 income) will be used to determine if you will pay an income-related premium in 2019. | |||
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Individual Filer Joint Filer |
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| Less than or equal to $85,000 | Less than or equal to $170,000 | $135.50 monthly | |
| $85,001 - $107,000 | $170,001 - $214,000 | $189.60 monthly | |
| $107,001 - $133,500 | $214,001 - $267,000 | $270.90 monthly | |
| $133,501 - $160,000 | $267,001 - $320,000 | $352.20 monthly | |
| $160,001- $499,999 | $320,001 - 749,999 | $433.40 monthly | |
| Greater than or equal to $500,000 | Greater than or equal to $750,000 | $460.50 monthly | |
| Part B Deductible | $185.00 annually | ||
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Click here for information on how to apply for Medicare Online |
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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 | 11,180,000 | 40% |
| 2019 | 11,400,000 | 40% |
| Annual Gift Tax Exclusion | $15,000 |
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| Source: Broadridge Investor Communications and Medicare.gov | |
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