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Retirement Planning Key Numbers

Retirement Planning Key Numbers

| October 16, 2019
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Retirement Planning Key Numbers

Retirement plan compensation limits

2018

2019

Maximum compensation per participant that can be used to calculate tax-deductible employer contribution (qualified plans/SEPs)

$275,000

$280,000

Compensation threshold used to determine a highly compensated employee

$120,000 (when 2018 is the look-back year)

$125,000 (when 2019 is the look-back year)

Compensation threshold used to determine a key employee in a top-heavy plan

$1 for more-than-5% owners

$175,000 for officers

$150,000 for more-than-1% owners

$1 for more-than-5% owners

$180,000 for officers

$150,000 for more-than-1% owners

Compensation threshold used to determine a qualifying employee under a SIMPLE plan

$5,000

$5,000

Compensation threshold used to determine a qualifying employee under a SEP plan

$600

$600

 

 Income phaseout range for determining deductibility of traditional IRA contributions for taxpayers:

2018

2019

1. Covered by an employer-sponsored plan and filing as:

 

 

  Single/Head of household

$63,000 - $73,000

$64,000 - $74,000

  Married filing jointly

$101,000 - $121,000

$103,000 - $123,000

  Married filing separately

$0 - $10,000

$0 - $10,000

2. Not covered by an employer-sponsored retirement plan, but filing joint return with a spouse who is covered by a plan

$189,000 - $199,000

$193,000 - $203,000

 

Income phaseout range for determining ability to fund a Roth IRA for taxpayers filing as:

2018

2019

  Single/Head of household

$120,000 - $135,000

$122,000 - $137,000

  Married filing jointly

$189,000 - $199,000

$193,000 - $203,000

  Married filing separately

$0 - $10,000

$0 - $10,000

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The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

This communication is strictly intended for individuals residing in the state(s) of AL, AZ, CA, CO, CT, FL, GA, IL, IN, LA, ME, MD, MA, MI, MS, NE, NV, NH, NY, NC, OH, PA, RI, SC, TX, VT, VA and WA. No offers may be made or accepted from any resident outside the specific states referenced.

Prepared by Broadridge Advisor Solutions Copyright 2019.

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