William Penn Life, 2019 (54. évfolyam, 2-5. szám)
2019-03-01 / 3. szám
Moneywise Here are the limits for tax year 2018 for those of you who ARE covered by a qualified plan at work: If Your Filing Status Is... And Your Modified AGI Is... Then You Can Take... single or head of household $63,000 or less a full deduction up to the amount of your contribution limit. more than $63,000 but less than $73,000 a partial deduction. $73,000 or more no deduction. married filing jointly or qualifying widow(er) $101,000 or less a full deduction up to the amount or your contribution limit. more than $101,000 but less than $121,000 a partial deduction. $121,000 or more no deduction. married filing separately less than $10,000 a partial deduction. $ 10,000 or more no deduction. If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the "single" filing status. __________________________________________________________________ Lastly, here are the limits for determining Roth contributions for tax year 2018: If Your Filing Status Is... And Your Modified AGI Is... Then You Can Contribute... married filing jointly or qualifying widow(er) less than $ 189,000 up to the limit. $189,000 but less than $199,000 a reduced amount. more than $ 199,000 zero. married filing separately and you lived with your spouse at any time during the year less than $10,000 a reduced amount. $10,000 or more zero. single, head of household, or married filing separately and you did not live with your spouse at any time during the year less than $ 120,000 up to the limit. $120,000 but less than $ 135,000 a reduced amount. $135,000 or more zero. As noted earlier, these limits will change again next year to factor in inflation. • For tax year 2019, the eligibility income amount for traditional IRAs will be increased to $64,000 for single taxpayers with full phase-out beginning at $74,000. • For married taxpayers, income amounts for traditional IRAs will be raised to $103,000 with full phase-out at $123,000. • For Roth IRAs, eligibility income limits for singles are increasing to $122,000, with full phase-out at $137,000. • Married taxpayers' income limits for Roth IRAs will increase in tax year 2019 to $193,000, with full phase-out at $203,000. Tax year 2019 will also see an increase in the maximum amount you are permitted to contribute to your IRA. As mentioned earlier, you have until April 15th of this year to make your contribution for tax year 2018. • The maximum amount you can contribute to your IRA for 2018 is $5,500. For those age 50 and older, you can contribute up to an additional $1,000, for a total of $6,500, as a "catch-up" contribution. • For tax year 2019, the contribution limit will be increased to $6,000 for those under age 50 and to $7,000 for those age 50 and older. If you're still a bit confused about the changes to the tax laws and their effects on your IRAs and retirement planning, remember that help is just a phone call away. Your WPA sales representative will be happy to answer any questions you may have about IRAs and retirement planning and the changes discussed here. If you don't have an agent, then please call us at the WPA Home Office, and we'll answer any questions you may have. Until next time, THINK SPRING! □ WILLIAM PENN LIFE 0 March 2019 ° 5
