FACTOIDS FOR 2019 AND 2020
INCLUDING MILEAGE RATES, IRA LIMITS, QUALIFIED PLAN LIMITS, ESTATE TAX LIMITS,
GIFTING LIMITS & FOREIGN EARNED INCOME LIMITS
STANDARD MILEAGE RATES
For 2019, the standard mileage rates for the use of a car (including vans, pickups or panel trucks) are:
- 58 cents per mile for business miles driven
- 20 cents per mile driven for medical/ moving purposes
- 14 cents per mile driven in service of charitable organizations – it takes an act of Congress to change charitable mileage…so we are pretty sure this won’t change anytime soon
For 2020
- 57.5 cents per mile for business miles driven
- 17 cents per mile driven for medical/moving purposes
- 14 cents per mile driven in service of charitable
After the passage of the Tax Cuts and Jobs Act, miscellaneous itemized deductions are suspended and the standard rates can not be used for unreimbursed employee travel expenses.
TRADITIONAL AND ROTH IRA CONTRIBUTION LIMITS—FUND BY APRIL 15, 2020!
Tax Year | Under age 50 | Age 50 or Older |
---|---|---|
2019 | $6,000 | $7,000 |
2020 | $6,000 | $7,000 |
THERE ARE SOME IMPORTANT RESTRICTIONS – GIVE US A CALL BEFORE FUNDING
FROM SOCIAL SECURITY ADMINISTRATION: https://www.ssa.gov/news/press/factsheets/colafacts2020.pdf
Retirement Earning Tax Exempt Amounts: |
2019 | 2020 |
---|---|---|
Under full retirement age |
$17,640/yr | $18,240/yr |
There is no limit on earnings beginning the month an individual attains full retirement age. See http://www.socialsecurity.gov/retire2/agereduction.htm
Remember – it is NOT 65 for everyone!!
Maximum Earning Taxable: | 2019 | 2020 |
---|---|---|
Social Security (OASDI only) |
$132,900 | $137,700 |
NEWS ON THE ESTATE FRONT:
Estate Planning | 2019 | 2020 |
---|---|---|
Estate Tax Exclusion | $11.4 Million | $11.58 Million |
Gift Tax Exclusion | $11.4 Million | $11.58 Million |
Annual Gifting – to anyone | $15,000 | $15,000 |
QUALIFIED PLAN LIMITS
2019 | 2020 | |
---|---|---|
Elective Deferrals | $19,000 | $19,500 |
Catch-Up Contributions | $6,000 | $6,500 |
Defined Benefit Plan Annual Benefit Limit | $225,000 | $230,000 |
Defined Contribution 415 limit (eg 401k, SEP) | $56,000 | $57,000 |
FOREIGN EARNED INCOME EXCLUSION:
- 2019 $105,900
- 2020 $107,600