Tax Fact: The end of the year is coming up on us fast and that means that tax season is right around the corner. There have been some changes to HSA and IRA contributions.
HSA: Contribution limit (employer + employee):
2020: Self-only: $3,550 Family: $7,100
2019: Self-only: $3,500 Family: $7,000
Change:Self-only: +$50 Family: +$100
HSA catch-up contributions (age 55 or older)
2020: $1,000
2019:$1,000
No change
HDHP minimum deductibles 2020:
Self-only: $1,400 Family: $2,800
2019: Self-only: $1,350 Family: $2,700
Change:Self-only: +$50 Family: +$100
HDHP maximum out-of-pocket amounts (deductibles, co-payments and other amounts, but not premiums)
2020:
Self-only: $6,900
Family: $13,800
2019: Self-only: $6,750
Family: $13,500
Change:Self-only: +$150 Family: +$300
IRA: The annual contribution limit for 2020 is $6,000, or $7,000 if you’re age 50 or older (same as 2019 limit). Your Roth IRA contributions may also be limited based on your filing status and income. Roth IRA contribution limits are reduced or eliminated at higher incomes. Traditional IRA contributions are deductible, but the amount you can deduct may be reduced or eliminated if you or your spouse is covered by a retirement plan at work. Lower-income taxpayers may be eligible for the “saver’s credit” if they contribute to an IRA. For the 2020 tax year, you have from Jan. 1, 2020, to April 15, 2021, to contribute to an IRA.
Have any questions, give us a call here at Red Rock Tax & Consulting. We are here to help you get through the stress of taxes! We offer a free 30-minute consultation so call us and let’s get your appointment set up 435-635-2494
From all of us here at Red Rock Tax & Consulting we hope you have a spectacular day!
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