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

Roth IRA Eligibility
Single MAGI Phaseout	$125,000 – $140,000
MFJ MAGI Phaseout	$198,000 – $208,000

Retirement Plans

401k, 403b, 457
Contribution LImit	$19,500
Catch Up (Age 50+)	$6,500

Health Savings Accounts

Contribution Limit
Individual	$3,600
Family	$7,200
Catch Up (Age 55+)	$1,000

Gift Tax

Lifetime Exemption	Tax Rate	Annual Exclusion
$11,700,000	40%	$15,000

Medicare Premium

Part B	$148.50
Part A	Less Than 30 Credits = $471	30-39 Credits = $259	40+ Credits = $0

Medicare IRMAA Surcharge

Your 2019 MAGI Income was:		IRMAA Surcharge
MFJ	Single	Part B	Part 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

Tax Rates

Tax Rate	MFJ	Single
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 $628,300	Over $523,600

Standard Deduction

Filing Status		Add’l (Age 65+ or Blind)
MFJ	$25,100	Married (each eligible spouse)	$1,350
Single	$12,550	Single, HOH	$1,700

Long Term Capital Gains Rates

Filing Status	0%Rate	15%Rate	20%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

Social Security Full Retirement Age

Birth Year	Full Retirement Age
1943-1954	66
1955	66 + 2 mo
1956	66 + 4 mo
1957	66 + 6 mo
1958	66 + 8 mo
1959	66 + 10 mo
1960+	67

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.

Coming Soon – The decisions I made when I applied for Medicare.