Honu Wealth Management
Garth A Williams, MBA, CFP®
Financial Advisor
1307 S Mary Ave, Suite 101
Sunnyvale, CA 94087
650-917-3400
garth@honuwealth.com
www.HonuWealth.com
 
 




2021 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.



This information was developed by Forefield, Inc. an independent third party. It is general in nature, is not a complete statement of all information necessary for making an investment decision, and is not a recommendation or a solicitation to buy or sell any security. Investments and strategies mentioned may not be suitable for all investors. Past performance may not be indicative of future results.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2020.