Tax Reference Guide

IRA or Roth IRA contribution limit

$6,000

IRA or Roth IRA catch-up (age 50 or older)

$1,000

Participants in a retirement plan

Single

$65,000 - $75,000

Married filing jointly

$104,000 -$124,000

$0 - $10,000

Spousal IRA

$196,000 - $206,000

Single

$124,000 - $139,000

Married filing jointly

$196,000 - $206,000

Elective deferrals to 401(k), 403(b), 457, and SARSEPs

$19,500

Catch-up contribution (age 50 or older)

$6,500

Defined contribution plan limit (Section 415(c)(1)(A))

$57,000

Defined benefit plan limit (Section 415(b)(1)(A))

$230,000

SEP IRA contribution limit

$57,000 or 25% of compensation

SIMPLE Plan contribution limit

$13,500

Catch-up contribution (age 50 or older)

$3,000

Maximum compensation limit for retirement plans

$285,000

Key employee (top-heavy plans)

$185,000

Highly compensated employee

$130,000

Single

$1,400

Family

$2,800

Single

$3,550

Family

$7,100

Catch-up contribution (age 55 or older)

$1,000

Over $414,700 but not over $622,050

$94,735 plus 35% of the excess over $414,700

Over $622,050

$167,307.50 plus 37% of the excess over $622,050

Single

$12,400

Married filing jointly

$24,800

Head of household

$18,650

Married filing separately

$12,400

Qualifying Child (Children under age 17)

$2,000

Dependents not eligible for Qualifying Child

$500

Single phase out begins at

$200,000

Married filing jointly phase out at Elderly (over age 65) or blind additional deduction

$400,000

Single

$1,650

Married

$1,300

0%

$0-$40,000

15%

$40,000-$441,450

20%

Over $441,450

If taxable income is:

The tax is:

Not over $9,875

10% of income

Over $9,875 but not over $40,125

$987.50 plus 12% of the excess over $9,875

Over $40,125 but not over $85,525

$4,617.50 plus 22% of the excess over $40,125

Over $85,525 but not over $163,300

$14,605.50 plus 24% of the excess over $85,525

Over $163,300 but not over $207,350

$33,271.50 plus 32% of the excess over $163,300

Over $207,350 but not over $518,400

$47,367.50 plus 35% of the excess over $207,350

Over $518,400

$156,235 plus 37% of the excess over $518,400

For 2020, rates are applied to taxable income levels:

Not over $19,750

10% of taxable income

Over $19,750 but not over $80,250

$1,975 plus 12% of the excess over $19,750

Over $80,250 but not over $171,050

$9,235 plus 22% of the excess over $80,250

Over $171,050 but not over $326,600

$29,211 plus 24% of the excess over $171,050

Over $326,600 but not over $414,700

Plus 32% of the excess over $326,600

Single

$72,900

$518,400

Married filing jointly

$113,400

$1,036,800

20%

26% up to $197,900 of AMT base

28% up to $197,900 of AMT base

Social Security cost-of-living adjustment

2.8%

Quarter of coverage (earnings for Social Security)

$1,360

Maximum benefit (worker retiring at FRA)

$2,861

Estimated average monthly benefit

$1,461

Social Security benefits are reduced if someone receives benefits and continues to work. The benefit is reduced $1 for every $2 or $3 earned above $17,640 in years prior to FRA and $46,920 ($3,910/month) in the year FRA is reached, respectively. There is no reduction at FRA.

For additional information about Social Security, please see Manning & Napier’s 2019 Social Security Guide

Not over $2,600

10% of taxable income

Over $2,600 but not over $9,450

$260 plus 24% of the excess over $2,600

Over $9,450 but not over $12,950

$1,904 plus 35% of the excess over $9,450

Over $12,950

$3,129 plus 37% of the excess over $12,950

Individual estate tax exclusion (Federal) (Any unused amount can transfer to a surviving spouse)

$11,580,000

Maximum estate tax rate

40%

Gift tax exclusion

$11,580,000

Generation-skipping exclusion

$11,580,000

Annual gift tax exclusion (per recipient)

$15,000

Lump sum accelerated gift to a 529 plan (5-year rule)

$75,000

States with an estate tax and/or inheritance tax: CT, DC, HI, IL, IA, KY, ME, MD, MN, NE, NJ, NY, OR, PA, RI, VT, and WA

Alternative Minimum Tax (AMT)

2019 Contributions

July 15, 2020

2020 Contributions

April 15, 2021

2020 Roth IRA Conversions

December 31, 2020

Age of IRA holder:

First RMD Deadline:

Turn 70 in first half of 2018 (before July 1)

April 1, 2019

Turn 70 in second half of 2018 (on or after July 1)

April 1, 2020

Turn 70 in first half of 2019

April 1, 2020

Turn 70 in second half of 2019

April 1, 2021

Married

$1,300

*Subsequent RMDs must be taken by December 31 of each year.

By waiting until April of the year after turning 70 ½ to take the first RMD, it is important to note that an IRA owner must then take two distributions before December 31 of that year (i.e. your prior year’s RMD and the current year’s RMD).

Form 1099-R (Retirement Account Distributions)

January 31, 2020

Consolidated Form 1099s (Taxable Accounts)

February 15, 2020

*Extended deadline for accounts holding certain securities (REITs, WHFITs, CMOs)

March 15, 2020

Form 5498 (Retirement Account Contributions)

August 31, 2020

For the period:

Due date:

January 1 – March 31

July 15, 2020

April 1 – May 31

June 15, 2020

June 1 – August 31

September 15, 2020

September 1 – December 31

January 15, 2021

*The base exemption amount for lifetime gift tax purposes was doubled from $5 million to $10 million and is scheduled to revert to $5 million (indexed for inflation) in 2026. Proposed legislation would prevent estates of individuals who pass away in or after 2026 from being taxed on gifts made in 2018 – 2025 up to the doubled exemption amount ($11.4 million in 2019).

*Medical expenses in excess of 10% of AGI are deductible in 2020.

*Total itemized deductions are not subject to reduction in 2020.

Taxation of trading activity within taxable investment portfolios (activity within IRAs and Qualified Plans is not taxed).

*Gains/losses realized on sales within a given tax year are aggregated with other gains/losses of the same type to arrive at the net short-term and the net long-term gain/loss for the year. If applicable, a net loss of one type then reduces a net gain of the other, arriving at a total net gain/loss for the year.

*A net short-term gain is taxed at the investor’s ordinary income tax rates and a net long-term gain is taxed at capital gain tax rates. If there is a total net loss, up to $3,000 can be used to offset other ordinary income and any remainder is carried forward to future tax years, maintaining its original nature (i.e. net short-term losses remain short-term).

*If positions sold at a loss are repurchased within 3- days, even if in an IRA or by a spouse (if filing jointly), then it is a wash sale and any loss is disallowed until the purchased shares are also sold.

*Investors expecting to realize significant gains can strategically do so to minimize the gains in a given year, such as by also selling positions at a loss to reduce the net total gain or realizing the gains over multiple years to spread the tax burden out over more than one year.