End of Year Tax Considerations

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    Ashley A. Constable
    Staff Accountant

    As we approach the end of the year, there are various items to consider: Did you maximize your retirement plan contributions? Did you maximize your Health Saving Account (HSA) contributions? Have you taken any required minimum distributions (RMDs)? In the tables below, we have provided the 2019 limits for making additional contributions prior to December 31. Also included are the 2020 limits to help plan for next year.

    Retirement Plan Contribution Limits:
    401(k), 403(b), 457 & SARSEPs$19,000$19,500
    Catch-up Contribution6,0006,500
    SIMPLE Plan13,00013,500
    Catch-up Contribution3,0003,000
    IRA & Roth IRA6,0006,000
    Catch-up Contribution1,0001,000
    Health Savings Accounts (HSA) Contribution Limits:
    Single Coverage$3,500$3,550
    Family Coverage7,0007,100

    Our Financial Planners are in the process of reaching out to our clients whom we manage IRA accounts for concerning their RMDs for 2019. If you hold an IRA outside of our office and have not taken your RMD for 2019, please reach out to your custodian as soon as possible to take care of this prior to December 31. There is a 50% tax penalty for every dollar not withdrawn timely.

    The following are some additional tax considerations for Tax Year 2019:

    The standard deduction rate was raised to $12,200 for single taxpayers, $24,400 for married filing jointly taxpayers, and $18,350 for head-of-household taxpayers. If itemizing, it is important to remember that taxpayers cannot deduct more than $10,000 of their state and local taxes on Schedule A. If you have an Ohio 529 plan, you are eligible to deduct $4,000 of contributions per beneficiary (per year) on your Ohio tax return.

    If you have any questions on end of year tax considerations, please contact a member of our team.