Specializing in retirement planning and personalized investment management.

Tax Limitations: 2021

Retirement Plans
Salary deferrals into 401(k), 403(b), and 457 Plans $19,500
Catch-up contribution (age 50+) $6,500
Defined Contribution $58,000
Defined Benefit $230,000
IRA and Roth IRA $6,000
Catch-up contribution (age 50+) $1,000
IRA deduction phaseout for active participants:
Single $66,000 - $76,000
Married Filing Jointly $105,000 - $125,000
Spousal IRA $198,000 - $208,000
Roth IRA phaseout:
Single $125,000 - $140,000
Married Filing Jointly $198,000 - $208,000

Estate and Gifting
Estate tax exclusion $11,700,000
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 $80,000 - $90,000
Married Filing Jointly $160,000 - $180,000
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) phase out
Single $70,000 - $85,000
Married Filing Jointly $140,000 - $170,000

Deductions
Personal Exemption $0, suspended for 2018 - 2025
Standard Deduction:
Single $12,550
Married Filing Jointly $25,100
Married Filing Separately $12,550
Head of Household $18,750
Standard Mileage Use Rates:
Business $0.56 per mile
Charitable $0.14 per mile
Medical or Moving $0.16 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 $142,800
Retirement earnings exempt amount* $18,960/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 $203
Coinsurance 20%
Monthly premium:
Single Married Filing Jointly  
$88,000 or less $176,000 or less $148.50
$88,001 - $111,000 $176,001 - $222,000 $207.90
$111,001 - $138,000 $222,001 - $276,000 $297.00
$138,000 - $165,000 $276,001 - $330,000 $386.10
$165,001 - $500,000$330,001 - $750,000$475.20
$500,001+ $750,001+ $504.90
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