IMPORTANT TAX UPDATES
401k Contribution Limits 401K contributions limits have been increased to $19,000 and $6,000 for taxpayers over age 50 making catch-up contributions. Taking advantage of these high limits will decrease your taxable income.
IRA Contribution Limits IRA contribution limits have also increased to $6,000 with a $1,000 catch-up amount for taxpayers over age 50.
Insurance Penalty The penalty (individual mandate) for not having health insurance no longer applies for 2019 federal tax returns. However, some states have their own individual health insurance mandate, requiring you to have qualifying health coverage or pay a fee with your state taxes for the 2019 plan year. If you live in a state that requires you to have health coverage and you don't have coverage (or an exemption), you'll be charged a fee when you file your 2019 state taxes. As of now, Massachusetts, New Jersey and the District of Columbia are the only states with health insurance mandates and penalties for 2019. Vermont goes into effect in 2020.
