Annual Tax Updates for 2019

Every year, we update the underlying assumptions of eMoney’s simulation to account for changes to the Federal Tax numbers and Contributions limits. In addition to these changes, we also update our Reports that rely on time-sensitive data (e.g., the Education Planning or Long Term Care Reports.)

Here’s a look at the updated Federal Tax Numbers and Contribution limits for this year:

Standard Deduction

Joint Single Head of Household  Separate
$24,400 $12,200 $18,350 $12,200

Note: Sunset values have also been updated and will be applied when the Tax Assumption – Income Tax Sunset is set to Sunset Occurs for 2026.

Income Tax Brackets

Married Filing Jointly

Bracket 10% 12% 22% 24% 32% 35% 37%
2019 Value $19,400 $78,950 $168,400 $321,450 $408,200 $612,0350 excess

Single

Bracket 10% 12% 22% 24% 32% 35% 37%
2019 Value $9,700 $39,475 $84,200 $160,725 $204,100 $510,300 excess

Head of Household

Bracket 10% 12% 22% 24% 32% 35% 37%
2019 Value $13,850 $52,850* $84,200 $160,700 $204,100 $510,300 excess

* The 12% bracket value was changed just for this filing status in the 2018 TCJA.

Married Filing Separately

Bracket 10% 12% 22% 24% 32% 35% 37%
2019 Value $9,700 $39,475 $84,200 $160,725 $204,100 $306,175 excess

Trusts

Bracket 10% 12% 22% 24% 32% 35% 37%
2019 Value $2,600 $9,300 $12,750 excess

In addition, the Capital Gains Tax Brackets, AMT Exemption, AMT Floor / Exemptions Phase Out, Qualified Business Income Specified Service Trade Phase Out, Estate Tax, Gifting, and Generation-Skipping Transfer Tax Values have all been updated where required.

2019 Contribution Limits

Retirement Plans

Traditional / Roth IRA Contribution Limit: $6,000

Traditional / Roth IRA Catch-up Limit: $1,000

Note: This is a fixed value. It is not indexed for inflation.

401(k) Employee Contribution Limit: $19,000

401(k) Employee Catch-up Limit: $6,000

401(k) Total Contribution Limit: $56,000

Employer Match Compensation Limit: $280,000

HSA Contribution Limits

Individual: $3,500

Family: $7,000

Next, some of the Reports with data being updated include:

Education Planning

  • The Growing Cost of Education
  • The Right Savings Plan Report

Long Term Care Insurance

  • Cost and Payment Options Report

Supplemental

  • Gifting Report
  • Credit Shelter Trust Report
  • Income in Respect of a Decedent (IRD) Report

Needs Analysis

  • Education Analysis
  • Estate Planning Analysis
  • Retirement Analysis
  • Disability Analysis
  • Long Term Care Analysis

Retirement Income Tool

  • Retirement Possibilities Attitudes Table

Finally, the Client Portal Workshop Factoids have been updated to latest data for 2018. For more information or if you have any questions about these annual updates, give us a call at 888-362-8482 or send us an email.

Amanda Willigmann

Written By