Strong Wealth Management

2019 TAX REFERENCE GUIDE

2019 Tax Reference Guide (2)

Federal Income Tax Brackets & Rates

Tax Brackets for 2019

Taxable income (i.e., income minus deductions and exemptions) between:

Married joint return

Income Range

Tax Bracket

$0 – $19,400

10%

$19,401 – $78,950

12%

$78,951 – $168,400

22%

$168,401 – $321,450

24%

$321,451 – $408,200

32%

$408,201 – $612,350

35%

over $612,350

37%

Married separate return

Income Range

Tax Bracket

$0 – $9,700

10%

$9,701 – $39,475

12%

$39,476 – $84,200

22%

$84,201 – $160,725

24%

$160,726 – $204,100

32%

$204,101 – $306,176

35%

over $306,176

37%

Head of household

Income Range

Tax Bracket

$0 – $13,850

10%

$13,851 – $52,850

12%

$52,851 – $84,200

22%

$84,201 – $160,700

24%

$160,701 – $204,100

32%

$204,101 – $510,300

35%

over $510,300

37%

Single

Income Range

Tax Bracket

$0 – $9,700

10%

$9,701 – $39,475

12%

$39,476 – $84,200

22%

$84,201 – $160,725

24%

$160,726 – $204,100

32%

$204,101 – $510,300 35%

over $510,300 37%


Estates & Trusts

Income Range

Tax Bracket

$0 – $2,600

10%

$2,601 – $9,300

24%

$9,301 – $12,750

35%

over $12,750

37%

Kiddie Tax

(Applies to children under age 19 and college students under the age of 24 with net unearned income)


Tax Rate

Net Unearned Income Under $2,200 No Tax

Net Unearned Income Over $2,200 Use “Estates & Trusts” Tax Table

Children under the age of 19 and college students under the age of 24 with unearned income less than $1,100 do not need to file an income tax return.

Standard Deduction/Exemption Amount

Standard Deduction

Filing status

Deduction Amount

Deduction Amount, if over 65 or blind

Married joint return

$24,400

$25,700

Married separate return

$12,200

$13,500

Head of household

$18,350

$20,000

Single

$12,200

$13,850

Long-term Capital Gains & Dividend Rates

0%

15%

20%

Married joint return

$0 – $78,750

$78,751 – $488,850

Over $488,850

Married separate return

$0 – $39,375

$39,376 – $244,425

Over $244,425

Head of household

$0 – $52,750

$52,751 – $461,700

Over $461,700

Single

$0 – $39,375

$39,376 – $434,550

Over $434,550

Estates & trusts

$0 – $2,650

$2,651 – $12,950

Over $12,950


Other tax rates Applicable Tax Rate

Collectibles 28%

Unrecaptured 1250 gain (depreciation) 25%


Gift & Estate Tax

Maximum Limits

Gift tax annual exclusion

$15,000

Highest estate and gift tax rate

40%

Estate tax and lifetime gift exemption

$11,400,000

GST exemption

$11,400,000

Annual exclusion for gifts to noncitizen spouse

$155,000


Qualified Retirement Plans

Traditional IRAs

Maximum Contributions

Tax Year Under Age 50 Age 50 and Above

2019 $6,000 $7,000


Income ranges for IRA contribution deductibility

Filing Status

Full deduction if Modified AGI is…

Partial deduction if Modified AGI is…

No deduction if Modified AGI is…

Married and filing jointly

(if you are covered

by a retirement plan at work)


$103,000 or less

More than $103,000 but less than

$123,000


$123,000 or more

(if your spouse is covered by a retirement plan at work and you are

not)


$193,000 or less


More than $193,000 but less than

$203,000


$203,000 or more

Married filing




separately (and you




or your spouse is

Not available

Less than $10,000

$10,000 or more

covered by a




retirement plan at




work)




Single or head of




household (and you


More than $64,000


are covered by a

$64,000 or less

but less than

$74,000 or more

retirement plan at


$74,000


work)





Roth IRAs

Maximum Contributions

Tax Year

Under Age 50

Age 50 and Above

2019

$6,000

$7,000

Income limits for Roth IRA contribution eligibility


Filing Status

Full contribution if Modified AGI is…

Partial

contribution if Modified AGI is…

No contribution if Modified AGI is…

Married and filing

jointly or qualifying widow(er)

Less than $193,000

More than $193,000 but less than

$203,000

$203,000 or more

Married filing

Not available

Less than $10,000

$10,000 or more

separately (if you




lived with spouse




at any time during




year)




Single, head of

Less than $122,000

More than $122,000

$137,000 or more

household or


but less than


married filing


$137,000


separately (if you




did not live with




spouse during




year)





SEP IRA Contribution Limits

  • Discretionary employer contributions up to the lesser of:

    o $56,000, or

    o 25% of compensation (or 20% of net earnings from self-employment)

  • Max compensation cap of $280,000.

  • Minimum of $600 in compensation required.

    401(k), 403(b), 457, SARSEP & SIMPLE IRA Salary Deferral Contributions

    Contribution Limits

    Type of Plan

    Under age 50

    Age 50 and over

    401(k), 403(b), 457 & SARSEP

    $19,000

    $25,000

    SIMPLE elective deferral

    $13,000

    $16,000

    For the 401(k), 403(b), 457 & SARSEP plans, the following rules apply:


  • $56,000 or 100% of compensation with a $280,000 compensation cap.

  • 401(k) and profit-sharing plans may be combined, but share a single limit.

Defined Benefit Plan

Contributions calculated using actuarial assumptions, are targeted to provide an annual benefit up to the lesser of $225,000 or 100% of the participant’s average compensation for three highest consecutive calendar years of active participation.

Highly Compensated Employee (HCE): $125,000 Key Employee: $180,000


Education Savings Accounts

Prepaid Tuition Plans

Prepaid Tuition Plans let you pre-pay all or part of the costs of an in-state public college education. They may also be converted for use at private and out-of-state colleges. The Private College 529 Plan is a separate prepaid plan for private colleges.

Educational institutions can offer a prepaid tuition plan but not a college savings plan.


Section 529 College Savings Account

529 Contribution Limits:

Contributions are completed gifts subject to the annual gift-tax exclusion and are removed from the contributor’s federal estate. Under a special rule, 5 years’ worth of gifts can be made in one year and prorated over a 5-year period without incurring gift taxes or reducing the contributor’s unified estate and gift tax credit. If the contributor dies before the 5-year prorating period expires, the contributions allocated to the remaining years move back into the contributor’s taxable estate.



Filing Status

Annual single contribution per beneficiary

Five-year contribution

made in a single year per beneficiary

Single

$15,000

$75,000

Married Filing Jointly

$30,000

$150,000

Tax-free treatment applies to withdrawals used to pay for qualified higher-education expenses. Federal tax-free withdrawals are now allowed for private elementary and secondary school expenses up to $10,000 per student, per year. The earnings portion of withdrawals used for non-qualified expenses may be subject to federal income taxes plus an additional 10% tax penalty and may be subject to state income or other taxes.


Coverdell Education Savings Account (ESA)

ESA annual contribution limit (aggregate per recipient)

Max Contribution

Beneficiaries under age 18 and special- $2,000

needs beneficiaries of any age

Contribution eligibility

Filing Status Full contribution if Partial No contribution if Modified AGI is… contribution if Modified AGI is…

Modified AGI is…

Married Filing Jointly

Less than $190,000

More than $190,000 but less than

$220,000

$220,000 or more

All Others

Less than $95,000

More than $95,000 but less than

$110,000

$110,000 or more

Tax-free treatment applies to withdrawals used to pay for qualified higher-education expenses. The earnings portion of withdrawals used for non-qualified expenses may be subject to federal income taxes plus an additional 10% tax penalty and may be subject to state income or other taxes.


Health Savings Accounts (HSAs)

The following table shows the minimum annual deductible and maximum annual deductible and other out-of-pocket expenses for high deductible health plans (HDHPs) for 2015, as well as the maximum annual HSA contribution.


HSA

Type

Contribution Limits High Deductible health plans (HDHPs)

Under 55 Age 55+ Minimum Maximum out-of- Catch-up Deductible pocket

Single $3,500 $4,500 $1,350 $6,750

Family $7,000 $8,000 $2,700 $13,500

*These limits do not apply to deductibles and expenses for out-of-network services if the plan uses a network of providers. Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limits apply.

  • To be an eligible individual and qualify for an HSA, you must: be covered under an HDHP on the first day of the month,

  • not be enrolled in Medicare benefits, and have no other health coverage*,

  • not be claimed as a dependent on someone else's tax return

For more detailed information on FISAs and taxes, visit the U.S. Department of Treasury Web site at www.ustreas.gov or talk with your tax advisor.

Qualified Retirement Plans

Traditional IRA Contribution Limits

Under Age 55

$5,500

Age 50 and Older

$6,500

Phase-out range for IRA contribution deductibility

Married and filing jointly.

$98,000 - $116,000 MAGI
(if you are covered by plan at work)
$183,000 - $193,000 MAGI
(if your spouse is covered by a plan
at work and you are not)

Married, filing separately

Single and head of household

$0 - $10,000 MAGI
(if you or your spouse is covered by
a plan at work)

$61,000 - $71,000 MAGI (if you are covered by plan at work)

Full deduction is permitted below the phase-out range. Scaled partial deduction permitted within range. No deduction permitted above range. Anyone under age 70 1/2 with earned income can make a fully deductible contribution, regardless of MAGI, if neither he/she nor the spouse is an active participant in an employer plan. if one or both are active plan participants, the above phase-out
ranges apply. Qualified clients not eligible for deductible contributions may make nondeductible contributions up to the annual limit

Roth IRA Contribution Limits

Under Age 50

$5,500

Age 50 and Above

$6,500

Phase-out range for IRA contribution deductibility

Married and filing jointly.

$183,000 - $193,000 MAGI

Married, filing separately

$0 - $10,000 MAGI
(if you or your spouse is covered by
a plan at work)

Single and head of household

$116,000 - $130,000 MAGI

Defined Benefit Plan

Contributions calculated using actuarial assumptions, are targeted to provide an annual benefit up to the lesser of $210,000 or 100% of the participant's average compensation for three highest consecutive calendar years of active participation.

SEP IRA Contribution Limits

  • Discretionary employer contributions up to the lesser of $53,000 or 25% of compensation (or 20% of net earnings from self-employment).
  • Max compensation cap of $265,000.
  • Minimum of $600 in compensation required.

401(k), 403(b), 457, SARSEP contribution limits

Age 55 and Under

Age 55 and Above

$18,000

$24,000

  • $53,000 or 100% of compensation with a $265,000 compensation cap.
  • 401(k) and profit-sharing plans may be combined, but share a single limit.

Simple IRA Salary Deferral Contributions

Under Age 55

$12,500

Age 55 and Above

$15,500

To participate must earn at least $5,000 in compensation during any 2 years before the current calendar year end and expect to receive at least $5,000 during the current calendar year.

Distributions made within the first 2 years of participation are subject to a 25% additional early distribution tax penalty instead of the standard 10%.

Educational Accounts

Section 529 College Savings Plan Account

Prepaid Tuition Plans let you pre-pay all or part of the costs of an in-state public college education. They may also be converted for use at private and out-of-state colleges. The Private College 529 Plan is a separate prepaid plan for private colleges.

Educational institutions can offer a prepaid tuition plan but not a college savings plan.

Coverdell Education Savings Account

Beneficiaries under age 18 and
special needs beneficiaries of any
age (maximum contribution)

$2,000

Phase-out ranges for Coverdell ESA contribution eligibility

Single

Married, filing jointly

$95,000- $110,000 MAGI

$190,000 - $220,000 MAGI

HSA Contribution Plan Limits

HSA Limits

The following table shows the minimum annual deductible and maximum annual deductible and other out-of-pocket expenses for high deductible health plans (HDHPs) for 2015, as well as the maximum annual HSA contribution.

Minimum Maximum Out-of-Contribution Limit 55+ Contribution Deductible Pocket*

Minimum

Maximum

Out-of-Contribution Limit

+55

Contribution Deductible Pocket*

Single

Family

$1,300

$2,600

$6,450

$12,900

$3,350

$6,650

$1,000

$1,000

*These limits do not apply to deductibles and expenses for out-of-network services if the plan uses a network of providers. Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limits apply.

  • To be an eligible individual and qualify for an HSA, you must:
    be covered under an HDHP on the first day of the month,
  • not be enrolled in Medicare benefits, and have no other health coverage*,
  • not be claimed as a dependent on someone else's tax return

For more detailed information on FISAs and taxes, visit the U.S. Department of Treasury Web site at www.ustreas.gov or talk with your tax advisor.

Federal Income Tax Brackets & Rates

Federal Income Tax