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2018 and 2019 Tax Facts

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2018 and 2019 Tax Facts

 A few changes that will certainly be impacting many businesses and individuals.

Standard Mileage Rate for 2018 and 2019

2018 and 2019 Retirement Contributions

Social Security Wage Limit 

 

Retirement Account Changes

The U.S. Internal Revenue Service (IRS)  announced cost-of-living adjustments (COLAs) affecting dollar limits for defined contribution and defined benefit retirement plans and other retirement-related items for tax year 2018. Many plan limits on contributions and benefits will increase in 2019.

Below are the key changes effective Jan. 1, 2019 and expiring 2018 limits.

 

2018

2019       

Employee Elective Deferrals 401(k) and 403(b); not including adjustments and catch-ups)

$18,500

 $19,000

Employee  Catch-Up Deferrals to 401(k), 403(b), 457(b), or SARSEP Plans

$6,000     

 $6,000

SIMPLE Retirement Accounts

$12,500

 $13,000

SIMPLE Employee  Catch-Up Deferrals

$3,000

 $3,000

Defined Benefit Plans

$220,000  

 $225,000

Defined Contribution Plans

$55,000

 $56,000

Annual Compensation Limits

$275,000

 $280,000

Individual Retirement Accounts ("IRAs"), for individuals 49 and below

$5,500

 $6,000

Individual Retirement Accounts ("IRAs"), for individuals 50 and above

 

$6,500

 $7,000

  

 

Standard Mileage Rates for 2018 and 2019

The Internal Revenue Service optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. 

 

 

2018

2019

 

 

 

Standard cents per mile

.545

.58

Medical or Moving cents per mile

.18

.20

Charitible cents per mile

.14

.14

 

  

 Social Security wage base increase. 

The 2019 amount of wages or earnings subject to Social Security tax  $132,900 up from $128,400.

 

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