New Year, New Numbers

Every year, there are cost of living adjustments to various numbers that affect financial planning, for instance, Social Security payments increase in 2019 by 2.8%. Here is a summary of some important changes. Please let us know if we can help you understand how these numbers affect you.

  • Your ability to save on a tax deferred basis through workplace retirement plans increased this year.
2018 2019 Change
Retirement Plan (401K) contribution limits $18,500 $19,000 $500
Retirement Plan (401K) catchup contribution (Age 50 or older) $6,000 $6,000 No Change
SIMPLE IRA contribution limit $12,500 $13,000 $500
Traditional or Roth IRA contribution limit $5,500 $6,000 $500
Traditional or Roth IRA catchup contribution limit (Age 50+) $1,000 $1,000 No Change
HSA contribution limit (employer + employee) Self-only: $3,450
Family: $6,900
Self-only: $3,500
Family: $7,000
Self-only: +$50
Family: +$100
HSA catch-up contributions (age 55 or older) $1,000 $1,000 No Change

 

  • The new year brings in another change in the income thresholds for Part B premiums. In 2018, the highest bracket was for incomes of ‘More than’ $160,000 for individuals and ‘More than’ $320,000 for couples. In 2019, the income threshold for the last bracket was changed, and a new bracket added.
Annual Income

Individual

Annual Income

Joint

2018

Part B

2018

Part D

2019

Part B

2019

Part D

$85,000 or less $170,000 or less $ 134.00 Plan Premium $ 135.50 Plan Premium
$85,001 up to $107,000 $170,001 up to $214,000 $ 187.50 Premium + $13.00 $ 189.60 Premium + $12.40
$107,001 up to $133,500 $214,001 up to $267,000 $ 267.90 Premium + $33.60 $ 270.90 Premium + $31.90
$133,500 up to $160,000 $267,000 up to $320,000 $ 348.30 Premium + $54.20 $ 352.20 Premium + $51.40
Over $160,000 Over $320,000 $ 428.60 Premium + $74.80 $ 433.40 Premium + $70.90
Over $500,000

(New in 2019)

Over $750,000

(New in 2019)

$ 460.50 Premium + $77.40

 

  • The changes to estate gifting exclusions were relatively small this year, but it has increased dramatically over the last several years.
Annual Gift Exclusion Lifetime Exclusion Amount
2015 $14,000 $5,430,000
2016 $14,000 $5,450,000
2017 $14,000 $5,490,000
2018 $15,000 $11,180,000
2019 $15,000 $11,400,000
Nothing contained in this publication is intended to constitute legal, tax, securities or investment advice, nor an opinion concerning the appropriateness of any investment, nor a solicitation of any type and does not guarantee future results. The information contained in this publication should not be acted upon without specific legal, tax and investment advice from a licensed professional. Past results are not indicative of future performance.