Designated beneficiaries use this Single Life Expectancy Table based on their age in the year after the IRA owner's death. That factor is reduced by one for each succeeding distribution year. Spouse beneficiaries who do not elect to roll the IRA over or treat it as their own also use the single life table, but they can look up their age each year.
This table is used only for lifetime distributions and only when the spousal exception applies (when the spouse is the sole beneficiary for the entire year and is more than 10 years younger than the IRA owner). Beneficiaries never use this table.
When owners of a Traditional IRA reach age 70½, they are required to take annual minimum distributions. The amount changes each year. Simply divide the IRA's value at the end of the prior year by the distribution period listed next to the age in the respective IRS table below.
You may give the following amount to an individual, free of gift tax:
| Year | Annual Exclusion |
|---|---|
| 2019 | $15,000 |
Tax on assets transferred to non-spouse heirs at death:
| Year | Exempt from Tax | GST Tax Rate |
|---|---|---|
| 2019 | $11,400,000 per person (no portability) | 40% |
At death, a surviving spouse's estate will owe estate taxes on the net value that exceeds the annual exemption:
| Year | Exempt from Tax | Estate-Tax Rate |
|---|---|---|
| 2019 | $11,400,000 per person with portability | Top rate of 40% |
Here's what can be contributed to a SEP IRA:
| Year | Status | Maximum Contribution |
|---|---|---|
| 2019 | W-2 Income | Up to 25% of compensation, but no more than $56,000. |
| 2019 | Self Employed | Generally up to 20%, but no more than $56,000. |
| Year | Eligibility |
|---|---|
| 2019 | Anyone Can |
