Communicating Finance in Plain English
January 17, 20200

Stay on top of your individual and business limits and deductions for 2020 with this recap.

Standard mileage rates effective Jan. 1, 2020:

  • 57.5 cents per mile driven for business use (half cent decrease from 2019)
  • 17 cents per mile driven for medical or moving purposes (3 cent decrease from 2019)
  • 14 cents per mile driven in service of charitable organizations

Social Security and Medicare

  • Social Security wage base (taxable maximum) is $137,700
  • Cost of Living Adjustment (COLA) stayed the same as 2019 with a 7.65% rate for employees and 15.3% rate for self-employed individuals
  • Additional Medicare tax limit for wages in excess of $200,000 remains 0.9%


  • Traditional and Roth IRA contribution limit is $6,000 ($7,000 for ages 50 and older)
  • 401(k) plan deferral limit is $19,500 (an additional $6,500 is permitted for ages 50 and older)
  • SIMPLE IRA deferral limit is $13,500 (an additional $3,000 is permitted for ages 50 and older)

Health accounts

  • Health Savings Account (HSA) limit is $3,550 for individuals, $7,100 for families, and those over 55 may contribute an additional $1,000
  • Flexible Spending Account (FSA) limit is $2,750

Gift tax exclusion

  • Annual gift tax exclusion remains unchanged at $15,000


  • First year bonus depreciation is 100% as a result of the Tax Cuts and Jobs Act (TCJA) until 2023
  • Section 179 depreciation federal maximum is $1,000,000 up to $2,500,000

For questions about these limitations, contact your Goering and Granatino team member.

June 27, 2019

When rocker RL Brooks decided to quit touring full time, little did he know he had the start of a business that would grow to become a wildly successful screen-printing shop, design house, promo merch distributor and fulfillment center.