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Important Numbers For 2021

Important Numbers for 2021

At A Glance – It’s a great time to check your accounts for Year-End Investment and Tax Planning. Here are some important numbers for 2021.

This article contains several tables with important numbers for 2021. Not all numbers will apply to you. Here are a few abbreviations used in these tables:

MFJ = Married Filing Joint

MAGI = Modified Adjusted Gross Income

IRMAA = Income-Related Monthly Adjusted Amount

Traditional IRA And Roth IRA

Traditional and Roth Contributions 
Total Contribution limit$6,000
Catch Up (Age 50+)$1,000
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-ira-contribution-limits

Roth IRA Eligibility 
Single MAGI Phaseout$125,000 – $140,000
MFJ MAGI Phaseout$198,000 – $208,000
https://www.irs.gov/retirement-plans/amount-of-roth-ira-contributions-that-you-can-make-for-2021

Retirement Plans

 

401k, 403b, 457 
Contribution LImit$19,500
Catch Up (Age 50+)$6,500
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits

 

Health Savings Accounts

 

Contribution Limit 
Individual$3,600
Family$7,200
Catch Up (Age 55+)$1,000
https://www.healthcare.gov/glossary/health-savings-account-HSA/

Gift Tax

 

Lifetime ExemptionTax RateAnnual Exclusion
$11,700,00040%$15,000
https://www.schwab.com/resource-center/insights/content/the-estate-tax-and-lifetime-gifting

Medicare Premium

 

Part B$148.50  
Part ALess Than 30 Credits = $47130-39 Credits = $25940+ Credits = $0
https://www.medicare.gov/your-medicare-costs/medicare-costs-at-a-glance

Medicare IRMAA Surcharge

 

Your 2019 MAGI Income was: IRMAA Surcharge 
MFJSinglePart BPart D
$176,000 or less$88,000 or less—–—–
$176,000 – $222,000$88,000 – $111,000$59.40$12.30
$222,000 – $276,000$111,000 – $138,000$148.50$31.80
$276,000 – $330,000$138,000 – $165,000$237.60$51.20
$330,000 – $750,000$165,000 – $500,000$326.70$70.70
$750,000 or more$500,000 or more$356.40$77.10
https://secure.ssa.gov/poms.nsf/lnx/0601101020

Tax Rates

 

Tax RateMFJSingle
10%$0-$19,900$0-$9,950
12%$19,901-$81,050$9,951-$40,525
22%$81,051-$172,750$40,526-$86,375
24%$172,751-$329,850$86,376-$164,925
32%$329,851-$418,850$164,926-$209,425
35%$418,851-$628,300$209,426-$523,600
37%Over $628,300Over $523,600
https://www.irs.com/articles/2021-federal-income-tax-rates-brackets-standard-deduction-amounts/

Standard Deduction

 

Filing Status Add’l (Age 65+ or Blind) 
MFJ$25,100Married (each eligible spouse)$1,350
Single$12,550Single, HOH$1,700
https://www.irs.com/articles/2021-federal-income-tax-rates-brackets-standard-deduction-amounts/

Long Term Capital Gains Rates

 

Filing Status0%Rate15%Rate20%Rate
MFJ$80,000 or less$80,800 – $501,600$501,600 or more
Single$40,400 or less$40,400 – $445,850$445,85
https://www.bankrate.com/investing/long-term-capital-gains-tax/

Social Security Full Retirement Age

 

Birth YearFull Retirement Age
1943-195466
195566 + 2 mo
195666 + 4 mo
195766 + 6 mo
195866 + 8 mo
195966 + 10 mo
1960+67
https://www.ssa.gov/oact/progdata/nra.html

Key Takeaway – The end of the year is a great time to make sure you have maxed out retirement accounts and HSA’s. Also, evaluate your numbers to make the final decisions on when to execute a taxable event such as a ROTH ladder or gift.

Assignment – Check all your retirement accounts such as 401k’s, HSA’s, and IRA’s to make sure they have been maxed out if possible. Check your expected tax bracket and standard deduction for any income that needs to be brought forward into the 2021 tax year or possibly deferred to another year. If you are reaching 65 years old, look at your income level to see if the IRMAA surcharges will apply to you and check if you can appeal them.

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