Where are the COLAs?

[austin3515]

Anyone know?

[david rigby]

Aisle 7.

[austin3515]

Son of a...  I was in aisle 6!!

[XTitan]

According to the IRS 2019-2020 Priority Guidance Plan, limits are intended to be released in November.

https://www.irs.gov/pub/irs-utl/2019-2020_pgp_initial.pdf page 24

Last year the release was November 1 which was a Thursday, so I'm betting on no later than November 7.

 

[ldr]

I just tuned in to find this very information.  Glad I am not the only one!

[ratherbereading]

Google is your friend!

[imchipbrown]

From Carol Calhoun's website:

1. 2020 IRS limits are still projected. 2020 Social Security limits reflect the Social Security Administration News Release (October 10, 2019).

2. 2019 limits reflect issuance of IRS Notice 2018-83, 2018-47 I.R.B. 774 (November 19, 2018) and the corresponding Social Security Administration News Release (October 11, 2018).

3. 2018 limits reflect issuance of IRS Notice 2017-64, 2017-45 I.R.B. 486 (November 6, 2017) and the corresponding Social Security Administration News Release (October 13, 2017), as modified by Updated 2018 Taxable Maximum Amount Announced (November 27, 2017).

4. 2017 limits reflect issuance of IRS Notice 2016-62, 2016-46 I.R.B. 725 (November 14, 2016) and the corresponding Social Security Administration News Release (October 19, 2016).

5. 2016 limits reflect issuance of IRS Notice 2015-75, 2015-46 I.R.B. 668 (November 16, 2015) and the corresponding Social Security Administration News Release (October 15, 2015).

6. 2015 limits reflect issuance of IRS Notice 2014-70, 2014-48 I.R.B. 905 (November 24, 2014) and the corresponding Social Security Administration News Release (October 22, 2014).

 

Look at the IRS Notice dates.  I'm guessing we'll see them in a week or two.

[XTitan]

Those are the dates when the IRS Notice is printed in the IRB.  Last year's News Release IR-2018-211 was issued November 1, 2018 https://www.irs.gov/newsroom/401k-contribution-limit-increases-to-19000-for-2019-ira-limit-increases-to-6000.

[XTitan]

Issue Number:    IR-2019-179

Inside This Issue

---

401(k) contribution limit increases to $19,500 for 2020; catch-up limit rises to $6,500

WASHINGTON — The Internal Revenue Service today announced that employees in 401(k) plans will be able to contribute up to $19,500 next year.

The IRS announced this and other changes in Notice 2019-59, posted today on IRS.gov. This guidance provides cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2020.

Highlights of changes for 2020

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $19,000 to $19,500.

The catch-up contribution limit for employees aged 50 and over who participate in these plans is increased from $6,000 to $6,500.

The limitation regarding SIMPLE retirement accounts for 2020 is increased to $13,500, up from $13,000 for 2019.

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the Saver’s Credit all increased for 2020.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or his or her spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor his or her spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) Here are the phase-out ranges for 2020:

• For single taxpayers covered by a workplace retirement plan, the phase-out range is $65,000 to $75,000, up from $64,000 to $74,000.
• For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is $104,000 to $124,000, up from $103,000 to $123,000.
• For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $196,000 and $206,000, up from $193,000 and $203,000.
• For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

The income phase-out range for taxpayers making contributions to a Roth IRA is $124,000 to $139,000 for singles and heads of household, up from $122,000 to $137,000. For married couples filing jointly, the income phase-out range is $196,000 to $206,000, up from $193,000 to $203,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

The income limit for the Saver’s Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $65,000 for married couples filing jointly, up from $64,000; $48,750 for heads of household, up from $48,000; and $32,500 for singles and married individuals filing separately, up from $32,000.

Key limit remains unchanged

The limit on annual contributions to an IRA remains unchanged at $6,000. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost-of-living adjustment and remains $1,000.

Details on these and other retirement-related cost-of-living adjustments for 2020 are in Notice 2019-59, available on IRS.gov.

[Dave Baker]

BenefitsLink Retirement Plan Newsletter subscribers had a special bulletin issue in their email inboxes at about 10:16 a.m.

The online archived copy of the bulletin is at https://benefitslink.com/newsletters/2019/2019_11_06_retirement_bulletin.html

Be sure you're a subscriber -- there is no cost -- by using our online sign-up form (click).

[Dave Baker]

Here is another IRS news release, which contains information about various changes to limitations other than those the apply to pensions.

IRS provides tax inflation adjustments for tax year 2020

 

IR-2019-180

 

WASHINGTON — The Internal Revenue Service today announced the tax year 2020 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2019-44 provides details about these annual adjustments.

 

The tax law change covered in the revenue procedure was added by the Taxpayer First Act of 2019, which increased the failure to file penalty to $330 for returns due after the end of 2019. The new penalty will be adjusted for inflation beginning with tax year 2021.

 

The tax year 2020 adjustments generally are used on tax returns filed in 2021.

 

The tax items for tax year 2020 of greatest interest to most taxpayers include the following dollar amounts:

• The standard deduction for married filing jointly rises to $24,800 for tax year 2020, up $400 from the prior year. For single taxpayers and married individuals filing separately, the standard deduction rises to $12,400 in for 2020, up $200, and for heads of households, the standard deduction will be $18,650 for tax year 2020, up $300.
• The personal exemption for tax year 2020 remains at 0, as it was for 2019, this elimination of the personal exemption was a provision in the Tax Cuts and Jobs Act.
• Marginal Rates: For tax year 2020, the top tax rate
  remains 37% for individual single taxpayers with
  incomes greater than $518,400 ($622,050 for married
  couples filing jointly).
  The other rates are:
  35%, for incomes over $207,350
  ($414,700 for married couples
  filing jointly);
  32% for incomes over $163,300
  ($326,600 for married couples filing jointly);
  24% for incomes over $85,525 ($171,050 for married
  couples filing jointly);
  22% for incomes over $40,125 ($80,250 for married
  couples filing jointly);
  12% for incomes over $9,875
  ($19,750 for married couples filing jointly).
  The lowest rate is 10% for incomes of single individuals
  with incomes of $9,875 or less ($19,750 for married
  couples filing jointly).
• For 2020, as in 2019 and 2018, there is no limitation on itemized deductions, as that limitation was eliminated by the Tax Cuts and Jobs Act.
• The Alternative Minimum Tax exemption amount for tax year 2020 is $72,900 and begins to phase out at $518,400 ($113,400 for married couples filing jointly for whom the exemption begins to phase out at $1,036,800).The 2019 exemption amount was $71,700 and began to phase out at $510,300 ($111,700, for married couples filing jointly for whom the exemption began to phase out at $1,020,600).
• The tax year 2020 maximum Earned Income Credit amount is $6,660 for qualifying taxpayers who have three or more qualifying children, up from a total of $6,557 for tax year 2019. The revenue procedure contains a table providing maximum credit amounts for other categories, income thresholds and phase-outs.
• For tax year 2020, the monthly limitation for the qualified transportation fringe benefit is $270, as is the monthly limitation for qualified parking, up from $265 for tax year 2019.
• For the taxable years beginning in 2020, the dollar limitation for employee salary reductions for contributions to health flexible spending arrangements is $2,750, up $50 from the limit for 2019.
• For tax year 2020, participants who have self-only coverage in a Medical Savings Account, the plan must have an annual deductible that is not less than $2,350, the same as for tax year 2019; but not more than $3,550, an increase of $50 from tax year 2019. For self-only coverage, the maximum out-of-pocket expense amount is $4,750, up $100 from 2019. For tax year 2020, participants with family coverage, the floor for the annual deductible is $4,750, up from $4,650 in 2019; however, the deductible cannot be more than $7,100, up $100 from the limit for tax year 2019. For family coverage, the out-of-pocket expense limit is $8,650 for tax year 2020, an increase of $100 from tax year 2019.
• For tax year 2020, the adjusted gross income amount used by joint filers to determine the reduction in the Lifetime Learning Credit is $118,000, up from $116,000 for tax year 2019.
• For tax year 2020, the foreign earned income exclusion is $107,600 up from $105,900 for tax year 2019.
• Estates of decedents who die during 2020 have a basic exclusion amount of $11,580,000, up from a total of $11,400,000 for estates of decedents who died in 2019.

• The annual exclusion for gifts is $15,000 for calendar year 2020, as it was for calendar year 2019.
   
• The maximum credit allowed for adoptions for tax year 2020 is the amount of qualified adoption expenses up to $14,300, up from $14,080 for 2019.