2020 Annual Gift Tax Exclusion
You may give the following amount to an individual, free of gift tax:
| Year | Annual Exclusion |
|---|---|
| 2020 | $15,000 |
Printable
2020 Generation-Skipping Transfer (GST) Tax
Tax on assets transferred to non-spouse heirs at death:
| Year | Exempt from Tax | GST Tax Rate |
|---|---|---|
| 2020 | $11,580,000 per person (no portability) | 40% |
2020 Federal Estate Tax Levels
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 |
|---|---|---|
| 2020 | $11,580,000 per person with portability | Top rate of 40% |
2020 Federal Tax Brackets
Marginal Tax Rate | Single | Married Filing Jointly or Qualifying Widow(er) | Married Filing Separately |
10% | $0 - $9,875 | $0 - $19,750 | $0 - $9,875 |
12% | $9,876 - $40,125 | $19,751 - $80,250 | $9,876 - $40,125 |
22% | $40,126 - $85,525 | $80,251 - $171,050 | $40,126 - $85,525 |
24% | $85,526 - $163,300 | $171,051 - $326,600 | $85,526- $163,300 |
32% | $163,301 - $207,350 | $326,601 - $414,700 | $163,301- $207,350 |
35% | $207,351 - $518,400 | $414,701 - $622,050 | $207,351- $311,025 |
37% | Over $518,400 | Over $622,050 | Over $311,025 |
2020 SEP IRA Contribution Levels
Here's what can be contributed to a SEP IRA:
| Year | Maximum Contribution |
|---|---|
| 2020 | Up to 25% of compensation of up to $285,000, but no more than $57,000. Catch-up contributions do not apply. |
2020 Roth IRA Conversion Eligibility
| Year | Eligibility |
|---|---|
| 2020 | Anyone Can |
2020 Traditional IRA Deductions
If you are covered by a retirement plan at work, use this IRS table to determine if you can deduct your 2019 Traditional IRA contribution:
| If Your Filing Status Is... | And Your Modified AGI Is... | Then You Can Take... |
|---|---|---|
| Single, head of household | $65,000 or less | a full deduction up to the amount of your contribution limit. |
| more than $65,000 but less than $75,000 | a partial deduction. | |
| $75,000 or more | no deduction. | |
| Married filing jointly or qualifying widow(er) | $104,000 or less | a full deduction up to the amount of your contribution limit. |
| more than $104,000 but less than $124,000 | a partial deduction. | |
| $124,000 or more | no deduction. | |
| Married filing separately | less than $10,000 | a partial deduction. |
| $10,000 or more | no deduction. | |
| If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the "Single" filing status. | ||
If you aren't covered by a retirement plan at work or one isn't offered, use this IRS table to determine if you can deduct your 2020 Traditional IRA contribution:
| If Your Filing Status Is... | And Your Modified AGI Is... | Then You Can Take... |
|---|---|---|
| Single, head of household, or qualifying widow(er) | any amount | a full deduction up to the amount of your contribution limit. |
| Married filing jointly or separately with a spouse who is not covered by a plan at work | any amount | a full deduction up to the amount of your contribution limit. |
| Married filing jointly with a spouse who is covered by a plan at work | $196,000 or less | a full deduction up to the amount of your contribution limit. |
| more than $196,000 but less than $206,000 | a partial deduction. | |
| $206,000 or more | no deduction. | |
| Married filing separately with a spouse who is covered by a plan at work | less than $10,000 | a partial deduction. |
| $10,000 or more | no deduction. | |
| If you file separately and did not live with your spouse at any time during the year, your IRA deduction is determined under the "Single" filing status. | ||
2020 Roth IRA Eligibility
| If your filing status is... | And your modified AGI is... | Then you can contribute... |
|---|---|---|
| married filing jointly or qualifying widow(er) | < $196,000 | up to the limit |
> $196,000 but < $206,000 | a reduced amount | |
> $206,000 | zero | |
| married filing separately and you lived with your spouse at any time during the year | < $10,000 | a reduced amount |
> $10,000 | zero | |
| single, head of household, or married filing separately and you did not live with your spouse at any time during the year | < $124,000 | up to the limit |
> $124,000 but < $139,000 | a reduced amount | |
> $139,000 | zero |
2020 IRA Contribution Levels
| Year | Under age 50 | Age 50+ |
|---|---|---|
| 2020 | $6,000 | $7,000 |
2019 Single Life Table for Inherited IRAs
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.