Qualified Accounts

2020 contribution limits for your 401(k), 403(b), or a 457 plan have increased from $19,000 to $19,500. Additionally, if you are age 50 or older, you are eligible for a “catch-up” contribution which has increased from $6,000 to $6,500 a year.

2020 contribution limits for an IRA or Roth IRA have stayed unchanged at $6,000, plus a $1,000 catch-up contribution for individuals over age 50. Contributions to an IRA can be tax deductible if you do not have a qualified plan, regardless of your adjusted gross income. However, if you (or your spouse) are eligible for a qualified plan, your contribution may be deductible based on the following Adjusted Gross Income (AGI) amounts:

Traditional IRA 2020 AGI Limits:·

  •  Single or Head of Household: $65,000 – $75,000·
  • Married Filing Jointly (and you’re covered by an employer retirement plan) $104,000 -$124,000·
  • Married Filing Jointly (and your spouse is covered by an employer retirement plan)$196,000 -$206,000·
  • Married Filing Separately: $0 – $10,000

Roth IRA 2020 AGI limits:·

  • Single or Head of Household: $124,000 – $139,000·
  • Married Filing Jointly: $196,000 – $206,000·
  • Married Filing Separately: $0 – $10,000

Healthcare Savings Accounts (HSA):

If you have a high-deductible health insurance plan, you are eligible to contribute to an HSA. For 2020, a single taxpayer can contribute $3,550 and family coverage is $7,100. In addition, there is a catch-up contribution of $1,000 for anyone who is age 55 or older.

Estate Tax:

For 2020, the estate tax exclusion amount will increase to $11,580,000. However, the calendar gift tax exclusion remains at $15,000. The present interest gift to a spouse who is not a U.S. citizen will increase to $157,000.

Please do not hesitate to call us with any questions you may have. Wishing you all a happy and safe holiday season!

The Winthrop Wealth Team


Securities offered through LPL Financial. Member FINRA/SIPC. Investment Advice offered through Winthrop Wealth Management, a Registered Investment Advisor and separate entity from LPL Financial.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.