Proactive tax planning throughout the year is the key to reducing taxes and maximizing your after-tax dollars for wealth accumulation. This is accomplished by applying changing tax laws to your specific situation. Each year the IRS provides updates to a number of key limits that impact tax deductions, contributions, and other deferrals throughout the year.
Retirement Plans
- Elective deferrals to 401(k), 403(b), 457 and SARSEP’s $19,500 annual limit with a $6,500 age 50+ catchup.
- Defined Contribution limit $58,000.
- IRA and Roth IRA contribution limits are increased to $6,000 with a $1,000 age 50+ catchup.
- IRA deduction phaseout for active participants in a retirement plan.
- Single: $66,000 – $76,000 Adjusted Gross income (AGI)
- Married filing jointly: $105,000 – $125,000 AGI
- Non-active participant married to active participant: $198,000 – $208,000 AGI
- Roth IRA phaseout
- Single: $125,000 – $140,000
- Married filing jointly: $198,000 – $208,000
- Non-deductible IRA contributions – There is no income limit
- Simple IRA $13,500 maximum contribution with an age 50+ catchup of $3,000
College Savings
- Ohio allows a $4,000 deduction per beneficiary to a 529 college savings plan and the earnings will never be taxed so long as they are used for college expenses.
Estate and Gift Tax
- Annual family gift tax exclusion: $15,000
- Estate and gift tax exclusion: $11,700,000
Health Savings Account Contribution Maximum
- Single: $3,600
- Family: $7,200
- Catch-up age 55 and older: $1,000
Standard Deduction
- Single: $12,550
- Married filing jointly: $25,100
- Blind and elderly additional deduction single $1,700 and married $1,350 each
Required Minimum Distributions
- Individuals age 70½ or older may have as much as $100,000 a year transferred tax free from their individual retirement accounts (IRAs) to qualified charitable organizations.
For more information about the tax planning strategies we utilize, please contact our team for a no-pressure, no-obligation introductory call at 513-984-6696 or https://calendly.com/new/conversation
