Eggert Financial Management, Inc.

Cultivating Wealth, Shaping Legacies
Bill Eggert, CFP®, NSSA®
President
7200 S. Alton Way
Suite A-210
Centennial, CO 80112
303-414-0400
info@eggertfinancial.net
www.eggertfinancial.net

February 24, 2020

2020 Key Numbers
 

Government Benefits

Social Security

Social Security Cost-of-living adjustment (COLA)20202021
For Social Security and Supplemental Security Income (SSI) beneficiaries1.60%1.30%
Tax rate--employee20202021
FICA tax -- Employee 7.65%7.65%
Social Security (OASDI) portion of tax 6.20%6.20%
Medicare (HI) portion of tax1.45%11.45%1
Tax rate--self-employed20202021
Self-Employed15.30%15.30%
Social Security (OASDI) portion of tax 12.40%12.40%
Medicare (HI) portion of tax2.90%12.90%1

1 An additional 0.9% Medicare/hospital insurance tax (for a total employee contribution of 2.35%) is assessed on wages exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns). An additional 0.9% Medicare/hospital insurance tax (for a total Medicare portion of 3.8%) is assessed on self-employment income exceeding $200,000 ($250,000 for married couples filing joint returns, $125,000 for married individuals filing separate returns).

Maximum taxable earnings20202021
Social Security (OASDI only)$137,700$142,800
Medicare (HI only)No limitNo limit
Quarter of coverage20202021
Earnings required$1,410$1,470
Retirement earnings test--exempt amounts--Under full retirement age--Benefits reduced by $1 for each $2 earned above:20202021
Yearly figure$18,240 $18,960
Monthly figure$1,520$1,580
Retirement earnings test--exempt amounts--Year individual reaches full retirement age--Benefits reduced by $1 for each $3 earned above (applies only to earnings for months prior to attaining full retirement age):20202021
Yearly figure$48,600 $50,520
Monthly figure$4,050$4,210
Retirement earnings test--exempt amounts--Beginning the month individual attains full retirement age20202021
No limit on earningsNo limit on earnings
Social Security disability thresholds20202021
Substantial gainful activity (SGA) for the sighted (monthly figure)$1,260 $1,310
Substantial gainful activity for the blind (monthly figure)$2,110$2,190
Trial work period (TWP) (monthly figure) $910 $940
SSI federal payment standard20202021
Individual (monthly figure)$783 $794
Couple (monthly figure)$1,175$1,191
SSI resource limits20202021
Individual$2,000 $2,000
Couple$3,000$3,000
SSI student exclusion limits20202021
Monthly limit$1,900 $1,930
Annual limit$7,670 $7,770
Maximum Social Security benefit20202021
Worker retiring at full retirement age (monthly figure)$3,011 $3,148
Formula for Monthly Primary Insurance Amount (PIA)20202021
(90% of first X of AIME + 32% of the AIME over X and through Y + 15% of AIME over Y)X=$960 Y=$5,785X=$996 Y=$6,002

Medicare

Medicare monthly premium amounts--Part A (hospital insurance) premium20202021
Individuals with 40 or more quarters of Medicare-covered employment$0 $0
Individuals with less than 40 quarters of Medicare-covered employment who are not otherwise eligible for premium-free hospital insuranceUp to $458Up to $471
Medicare monthly premium amounts--Part B (medical insurance) monthly premium--for beneficiaries who file an individual income tax return with income that is:20202021
Less than or equal to $88,000 $144.602$148.502
$88,001 - $111,000$202.40$207.90
$111,001 - $138,000 $289.20$297.00
$138,001 - $165,000$376.00$386.10
$165,001 - $499,999$462.70 $475.20
$500,000 and above$491.60$504.90
Medicare monthly premium amounts--Part B (medical insurance) monthly premium--for beneficiaries who file a joint income tax return with income that is:20202021
Less than or equal to $176,000$144.602$148.502
$176,001 - $222,000$202.40 $207.90
$222,001 - $276,000$289.20$297.00
$276,001 - $330,000$376.00 $386.10
$330,001 - $749,999$462.70 $475.20
$750,000 and above $491.60$504.90
Medicare monthly premium amounts--Part B (medical insurance) monthly premium--for beneficiaries who are married, but file a separate tax return from their spouse and lived with spouse at some time during the taxable year with income that is:20202021
Less than or equal to $88,000$144.602$148.502
$88,001 - $412,000$462.70$475.20
$412,000 and above$491.60$504.90

2 This is the standard Part B premium amount. However, some people who get Social Security benefits will pay more or less than this amount.

Original Medicare plan deductible and coinsurance amounts--Part A (hospital insurance)20202021
Deductible per benefit period$1,408$1,484
Coinsurance per day for 61st to 90th day of each benefit period$352$371
Coinsurance per day for 91st to 150th day for each lifetime reserve day (total of 60 lifetime reserve days--nonrenewable)$704$742
Original Medicare plan deductible and coinsurance amounts20202021
Skilled nursing facility coinsurance per day for 21st to 100th day of each benefit period$176$185.50
Original Medicare plan deductible and coinsurance amounts--Part B (medical insurance) annual deductible20202021
Individual pays 20 percent of the Medicare-approved amount for services after deductible is met$198$203

Medicaid

Income threshold20202021
Monthly income threshold for income-cap states ("300 percent cap limit")$2,349$2,382
Monthly maintenance needs allowance for at-home spouse20202021
Minimum 3$2,113.75 $2,155.00
Maximum$3,216TBD
Community spousal resource allowance20202021
Minimum$25,728TBD
Maximum$128,640TBD

3 Amounts listed actually effective as of July of prior year; different amounts apply to Alaska and Hawaii.

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Eggert Financial Management, Inc. is an Investment Advisory firm regulated by the State of Colorado.

 

Prepared by Broadridge Advisor Solutions Copyright 2020.