Specializing in retirement planning and personalized investment management.

Tax Limitations: 2018

Retirement Plans
Salary deferrals into 401(k), 403(b), and 457 Plans $18,500
Catch-up contribution (age 50+) $6,000
Defined Contribution $55,000
Defined Benefit $220,000
IRA and Roth IRA $5,500
Catch-up contribution (age 50+) $1,000
IRA deduction phaseout for active participants:
Single $63,000 - $73,000
Married Filing Jointly $101,000 - $121,000
Married Filing Separately $0 - $10,000
Spousal IRA $189,000 - $199,000
Roth IRA phaseout:
Single $120,000 - $135,000
Married Filing Jointly $189,000 - $199,000

Estate and Gifting
Estate tax exclusion $11,200,000
Gift tax annual exclusion $15,000

Education
Coverdell Education Savings Account ($2,000 limit) phaseout:
Single $95,000 - $110,000
Married Filing Jointly $190,000 - $220,000
Lifetime Learning Credit (20% of qualified expenses up to $10,000) phaseout:
Single $57,000 - $67,000
Married Filing Jointly $114,000 - $134,000
American Opportunity Tax Credit (100% up to $2k of qualified expenses, 25% on next $2k) phaseout:
Single $80,000 - $90,000
Married Filing Jointly $160,000 - $180,000
Student loan interest deduction ($2,500) phaseout
Single $65,000 - $80,000
Married Filing Jointly $130,000 - $160,000

Deductions
Personal Exemption $0, suspended for 2018 - 2025
Standard Deduction:
Single $12,000
Married Filing Jointly $24,000
Married Filing Separately $12,000
Head of Household $18,000
Standard Mileage Use Rates:
Business $0.545 per mile
Charitable $0.14 per mile
Medical or Moving $0.18 per mile

Social Security & Medicare
Social Security tax rate (employee) 6.20%
Social Security tax rate (self-employed) 12.40%
Social Security taxable wage base $128,700
Retirement earnings exempt amount* $17,040/year
* $1 in social security benefits will be withheld for every $2 in earning above this amount
Medicare tax rate (employee) 1.45%
Medicare tax rate (self-employed) 2.90%
Medicare taxable wage base Unlimited
Medicare Part B:
Deductible $183
Coinsurance 20%
Monthly premium:
Single Married Filing Jointly  
$85,000 or less $170,000 or less $134.00
$85,001 - $107,000 $170,001 - $214,000 $187.50
$107,001 - $133,500 $214,001 - $267,000 $267.90
$133,500 - $160,000 $267,000 - $320,000 $348.30
$160,001 + $320,001 + $428.60