2020 tax planning tables

Investment and Insurance Products

NOT FDIC Insured NO Bank Guarantee MAY Lose Value

1 2020 tax planning tables

2020 important deadlines Last day to hellip January 15

bull Pay fourth-quarter 2019 federal individual estimated income tax

January 28 bull Buy in to close a short-against-the-box position (regular-way

settlement) for 2019

April 1 bull Take 2019 required minimum distribution (RMD) from traditional

IRAs if you reached age 701 in 2019

April 15 bull File 2019 federal individual income tax return (or make

payment with extension) bull Pay frst-quarter 2020 federal individual estimated income tax bull Make 2019 contribution to traditional IRA

Roth IRA Health Savings Account (HSA) or Education Savings Account (ESA)

June 15 bull Pay second-quarter 2020 federal individual estimated

income tax

September 15 bull Pay third-quarter 2020 federal individual estimated income tax

October 15 bull File 2019 federal individual income tax return subject to

automatic extensions

November 30 bull Double up to avoid violating the ldquowash salerdquo rule

December 31 bull Sell stock or listed options to realize a gain or loss bull Take 2020 RMDs from traditional IRAs and most qualifed plans

if you reached age 701 before 2020 bull Complete a Roth IRA conversion bull Complete a 529 plan contribution bull Sell shares acquired through the 2020 exercise of incentive stock

options (ISOs) in disqualifying disposition to limit alternative minimum tax (AMT) exposure

bull Complete gifts for the current calendar year (charitable or other)

2

2020 income tax rate schedules Married taxpayer fling jointlysurviving spouse

If taxable income is

$0ndash$19750

$19750ndash$80250

$80250ndash$171050

$171050ndash$326600

$326600ndash$414700

$414700ndash$622050

$622050 or more

The tax is

10 of the taxable income

$197500 + 12 of excess over $19750

$923500 + 22 of excess over $80250

$2921100 + 24 of excess over $171050

$6654300 + 32 of excess over $326600

$9473500 + 35 of excess over $414700

$16730750 + 37 of excess over $622050

Single Taxpayer

If taxable income is

$0ndash$9875

$9875ndash$40125

$40125ndash$85525

$85525ndash$163300

$163300ndash$207350

$207350ndash$518400

$518400 or more

The tax is

10 of the taxable income

$98750 + 12 of excess over $9875

$461750 + 22 of excess over $40125

$1460550+ 24 of excess over $85525

$3327150 + 32 of excess over $163300

$4736750 + 35 of excess over $207350

$15623500 + 37 of excess over $518400

Head of household

If taxable income is

$0ndash$14100

$14100ndash$53700

$53700ndash$85500

$85500ndash$163300

$163300ndash$207350

$207350ndash$518400

$518400 or more

The tax is

10 of the taxable income

$141000 + 12 of excess over $14100

$616200 + 22 of excess over $53700

$1315800 + 24 of excess over $85500

$3183000 + 32 of excess over $163300

$4592600 + 35 of excess over $207350

$15479350 + 37 of excess over $518400

Married taxpayer fling separately

If taxable income is

$0ndash$9875

$9875ndash$40125

$40125ndash$85525

$85525ndash$163300

$163300ndash$207350

$207350ndash$311025

$311025 or more

The tax is

10 of the taxable income

$98750 + 12 of excess over $9875

$461750 + 22 of excess over $40125

$1460550 + 24 of excess over $85525

$3327150 + 32 of excess over $163300

$4736750 + 35 of excess over $207350

$8365375 + 37 of excess over $311025

Taxable income is income after all deductions (including either itemized or standard deduction)

1 2020 tax planning tables

2020 important deadlines Last day to hellip January 15

bull Pay fourth-quarter 2019 federal individual estimated income tax

January 28 bull Buy in to close a short-against-the-box position (regular-way

settlement) for 2019

April 1 bull Take 2019 required minimum distribution (RMD) from traditional

IRAs if you reached age 701 in 2019

April 15 bull File 2019 federal individual income tax return (or make

payment with extension) bull Pay frst-quarter 2020 federal individual estimated income tax bull Make 2019 contribution to traditional IRA

Roth IRA Health Savings Account (HSA) or Education Savings Account (ESA)

June 15 bull Pay second-quarter 2020 federal individual estimated

income tax

September 15 bull Pay third-quarter 2020 federal individual estimated income tax

October 15 bull File 2019 federal individual income tax return subject to

automatic extensions

November 30 bull Double up to avoid violating the ldquowash salerdquo rule

December 31 bull Sell stock or listed options to realize a gain or loss bull Take 2020 RMDs from traditional IRAs and most qualifed plans

if you reached age 701 before 2020 bull Complete a Roth IRA conversion bull Complete a 529 plan contribution bull Sell shares acquired through the 2020 exercise of incentive stock

options (ISOs) in disqualifying disposition to limit alternative minimum tax (AMT) exposure

bull Complete gifts for the current calendar year (charitable or other)

2

2020 income tax rate schedules Married taxpayer fling jointlysurviving spouse

If taxable income is

$0ndash$19750

$19750ndash$80250

$80250ndash$171050

$171050ndash$326600

$326600ndash$414700

$414700ndash$622050

$622050 or more

The tax is

10 of the taxable income

$197500 + 12 of excess over $19750

$923500 + 22 of excess over $80250

$2921100 + 24 of excess over $171050

$6654300 + 32 of excess over $326600

$9473500 + 35 of excess over $414700

$16730750 + 37 of excess over $622050

Single Taxpayer

If taxable income is

$0ndash$9875

$9875ndash$40125

$40125ndash$85525

$85525ndash$163300

$163300ndash$207350

$207350ndash$518400

$518400 or more

The tax is

10 of the taxable income

$98750 + 12 of excess over $9875

$461750 + 22 of excess over $40125

$1460550+ 24 of excess over $85525

$3327150 + 32 of excess over $163300

$4736750 + 35 of excess over $207350

$15623500 + 37 of excess over $518400

Head of household

If taxable income is

$0ndash$14100

$14100ndash$53700

$53700ndash$85500

$85500ndash$163300

$163300ndash$207350

$207350ndash$518400

$518400 or more

The tax is

10 of the taxable income

$141000 + 12 of excess over $14100

$616200 + 22 of excess over $53700

$1315800 + 24 of excess over $85500

$3183000 + 32 of excess over $163300

$4592600 + 35 of excess over $207350

$15479350 + 37 of excess over $518400

Married taxpayer fling separately

If taxable income is

$0ndash$9875

$9875ndash$40125

$40125ndash$85525

$85525ndash$163300

$163300ndash$207350

$207350ndash$311025

$311025 or more

The tax is

10 of the taxable income

$98750 + 12 of excess over $9875

$461750 + 22 of excess over $40125

$1460550 + 24 of excess over $85525

$3327150 + 32 of excess over $163300

$4736750 + 35 of excess over $207350

$8365375 + 37 of excess over $311025

Taxable income is income after all deductions (including either itemized or standard deduction)

2

2020 income tax rate schedules Married taxpayer fling jointlysurviving spouse

If taxable income is

$0ndash$19750

$19750ndash$80250

$80250ndash$171050

$171050ndash$326600

$326600ndash$414700

$414700ndash$622050

$622050 or more

The tax is

10 of the taxable income

$197500 + 12 of excess over $19750

$923500 + 22 of excess over $80250

$2921100 + 24 of excess over $171050

$6654300 + 32 of excess over $326600

$9473500 + 35 of excess over $414700

$16730750 + 37 of excess over $622050

Single Taxpayer

If taxable income is

$0ndash$9875

$9875ndash$40125

$40125ndash$85525

$85525ndash$163300

$163300ndash$207350

$207350ndash$518400

$518400 or more

The tax is

10 of the taxable income

$98750 + 12 of excess over $9875

$461750 + 22 of excess over $40125

$1460550+ 24 of excess over $85525

$3327150 + 32 of excess over $163300

$4736750 + 35 of excess over $207350

$15623500 + 37 of excess over $518400

Head of household

If taxable income is

$0ndash$14100

$14100ndash$53700

$53700ndash$85500

$85500ndash$163300

$163300ndash$207350

$207350ndash$518400

$518400 or more

The tax is

10 of the taxable income

$141000 + 12 of excess over $14100

$616200 + 22 of excess over $53700

$1315800 + 24 of excess over $85500

$3183000 + 32 of excess over $163300

$4592600 + 35 of excess over $207350

$15479350 + 37 of excess over $518400

Married taxpayer fling separately

If taxable income is

$0ndash$9875

$9875ndash$40125

$40125ndash$85525

$85525ndash$163300

$163300ndash$207350

$207350ndash$311025

$311025 or more

The tax is

10 of the taxable income

$98750 + 12 of excess over $9875

$461750 + 22 of excess over $40125

$1460550 + 24 of excess over $85525

$3327150 + 32 of excess over $163300

$4736750 + 35 of excess over $207350

$8365375 + 37 of excess over $311025

Taxable income is income after all deductions (including either itemized or standard deduction)

3 2020 tax planning tables

Married age 65 or older or blind $ 1300 Married age 65 or older and blind $ 2600 Single age 65 or older or blind $ 1650 Single age 65 or older and blind $ 3300

Modified adjusted gross income

(MAGI)

Tax credit for each child younger than

age 17

Marriedjoint $0ndash$400000 $2000

Individual $0ndash$200000 $2000

Exemption Phased out on excess over

Married filing joint and surviving spouse

$113400 $1036800

Unmarried individual $72900 $518400

Married filing separately

$56700 $518400

Trusts and estates $25400 $84800

Standard deductions Married

joint Single Head of

household Married separate

Dependents

$24800 $12400 $18650 $12400 $1100 For dependents with earned income the deduction is the greater of $1100 or earned income + $350 (up to $12400)

Additional standard deductions

per person

Tax credit for dependents

Tax credit is reduced by $50 for each $1000 by which the taxpayerrsquos MAGI exceeds the maximum threshold Taxpayers may be eligible for an additional $500 credit for qualifying dependents age 17 or older

Alternative minimum tax (AMT) Tax brackets

AMT income Tax Up to $197900 26

Over $197900 28

$98950 if married fling separately

AMT exemption

4

Single $0ndash$40000 $40001ndash $441451 + $441450

Married filing jointly $0ndash $80000 $80001ndash $496601 + and surviving spouse $496600

Head of household $0ndash$53600 $53601ndash $469051 + $469050

Married filing $0ndash$40000 $40001ndash $248301 + separately $248300

Trusts and estates $0ndash$2650 $2651ndash $13150

$13151 +

Capital gains and losses and dividends

Long-term capital gain rate(longer than one year)

0 15 20

Determine your capital gain bracket by adding your net long-term capital gains andor qualifed dividends to your other taxable income net of deductions

For example assume a joint filer has net taxable income of $85000 which includes $20000 in net long-term capital gain The first $15000 of the gain falls within the 0 rate threshold of $80000 and will be taxed at 0 while the remaining $5000 of long-term capital gain is above the $80000 threshold and will be taxed at 15

Short-term capital gain rate (one year or less)

Dividends

Taxed at ordinary income tax rate

Qualified dividends are taxed at the long-term capital gain rates Nonqualified dividends are taxed at ordinary income tax rates

Higher rates apply to collectibles and unrecaptured sect1250 gain Consult your tax advisor about how they apply to your situation

Netting capital gains and losses 1 Net short-term gains and short-term losses 2 Net long-term gains and long-term losses 3 Net short-term against long-term 4 Deduct up to $3000 of excess losses against ordinary

income per year 5 Carry over any remaining losses to future tax years

5 2020 tax planning tables

Education planning

Education Savings Accounts (ESA) bull Maximum nondeductible contribution is $2000 per

child per year bull Maximum contribution amount is lowered if a

contributorrsquos modified adjusted gross income (MAGI) is between - $95000 and $110000 for individual filers - $190000 and $220000 for joint filers

bull No contributions can be made if contributorrsquos MAGI exceeds the stated limits or the beneficiary is age 18 or older

bull Interest dividends and capital gains grow tax-deferred and may be distributed federal-income-tax free as long as the money is used to pay qualified education expenses

529 plans bull Earnings accumulate tax-deferred qualified withdrawals

may be federal-income-tax-free bull State-tax incentives available in some states bull Contributions up to $75000 (single) and $150000

(married couples) allowed in one year without a reduction in the applicable giftestate tax exclusion (see page 11) No additional gifting in the current year or next four years without incurring potential gift tax implications

Please consider the investment objectives risk charges and expenses carefully before investing in a 529 savings plan The official statement for a specific plan which contains this and other information can be obtained by calling your Financial Advisor Read it carefully before you invest

American Opportunity Credit

Maximum credit $2500 per student for frst four years of qualifed expenses paid

MAGI phaseouts Married filing jointly $160000ndash$180000

Single filer $80000ndash$90000

Lifetime Learning Credit 20 of frst $10000 (per tax return) of qualifed expenses paid in 2020

Maximum credit

MAGI phaseouts Married filing jointly $118000ndash$138000

Single filer $59000ndash$69000

6

Unearned income Less than $1100 $1100 - $2200

More than $2200

Tax treatment No tax

Taxed at childrsquos rate Taxed at the higher of the

parents top marginal rate or the childs tax rate

Exclusion of US Savings Bond interest

MAGI phaseouts $123550ndash$153550 Married filing jointly

$82350ndash$97350 Others

Bonds must be titled in name(s) of taxpayer(s) only Owner must be age 24 or older at time of issue Must be Series EE issued after 1989 or any Series I bonds Proceeds must be used for qualifed postsecondary education expenses of the taxpayer spouse or dependent

Student loan interest deduction

Maximum deduction $2500

MAGI phaseouts $140000ndash$170000 Married filing jointly

$70000ndash$85000 Others

Kiddie tax Children who have not reached the age of 19 by the end of the tax year are subject to the ldquokiddie taxrdquo rules If the child continues to be a full-time student the rules apply until he or she turns age 24 If a child is age 18 or older and provides more than half of his or her own support the kiddie tax rules do not apply The following tax rate schedule will apply (assumes no earned income)

Estimated annual college costs

2020 2025 2030 2035

Public $23190 $26366 $29976 $34081

Private $51110

$60118 $70715 $83178

Total yearly costs for in-state tuition fees books and room and board (transportation and miscellaneous expenses not included) Base is 2019-2020 school year Costs for all future years projected by Wells Fargo Advisors in November 2019 assuming a 26 national average increase per year for public and a 33 national average increase per year for private Source Trends in College Pricing copy 2019 The College Board Reprinted with permission All rights reserved collegeboardorg

4

Single $0ndash$40000 $40001ndash $441451 + $441450

Married filing jointly $0ndash $80000 $80001ndash $496601 + and surviving spouse $496600

Head of household $0ndash$53600 $53601ndash $469051 + $469050

Married filing $0ndash$40000 $40001ndash $248301 + separately $248300

Trusts and estates $0ndash$2650 $2651ndash $13150

$13151 +

Capital gains and losses and dividends

Long-term capital gain rate(longer than one year)

0 15 20

Determine your capital gain bracket by adding your net long-term capital gains andor qualifed dividends to your other taxable income net of deductions

For example assume a joint filer has net taxable income of $85000 which includes $20000 in net long-term capital gain The first $15000 of the gain falls within the 0 rate threshold of $80000 and will be taxed at 0 while the remaining $5000 of long-term capital gain is above the $80000 threshold and will be taxed at 15

Short-term capital gain rate (one year or less)

Dividends

Taxed at ordinary income tax rate

Qualified dividends are taxed at the long-term capital gain rates Nonqualified dividends are taxed at ordinary income tax rates

Higher rates apply to collectibles and unrecaptured sect1250 gain Consult your tax advisor about how they apply to your situation

Netting capital gains and losses 1 Net short-term gains and short-term losses 2 Net long-term gains and long-term losses 3 Net short-term against long-term 4 Deduct up to $3000 of excess losses against ordinary

income per year 5 Carry over any remaining losses to future tax years

5 2020 tax planning tables

Education planning

Education Savings Accounts (ESA) bull Maximum nondeductible contribution is $2000 per

child per year bull Maximum contribution amount is lowered if a

contributorrsquos modified adjusted gross income (MAGI) is between - $95000 and $110000 for individual filers - $190000 and $220000 for joint filers

bull No contributions can be made if contributorrsquos MAGI exceeds the stated limits or the beneficiary is age 18 or older

bull Interest dividends and capital gains grow tax-deferred and may be distributed federal-income-tax free as long as the money is used to pay qualified education expenses

529 plans bull Earnings accumulate tax-deferred qualified withdrawals

may be federal-income-tax-free bull State-tax incentives available in some states bull Contributions up to $75000 (single) and $150000

(married couples) allowed in one year without a reduction in the applicable giftestate tax exclusion (see page 11) No additional gifting in the current year or next four years without incurring potential gift tax implications

Please consider the investment objectives risk charges and expenses carefully before investing in a 529 savings plan The official statement for a specific plan which contains this and other information can be obtained by calling your Financial Advisor Read it carefully before you invest

American Opportunity Credit

Maximum credit $2500 per student for frst four years of qualifed expenses paid

MAGI phaseouts Married filing jointly $160000ndash$180000

Single filer $80000ndash$90000

Lifetime Learning Credit 20 of frst $10000 (per tax return) of qualifed expenses paid in 2020

Maximum credit

MAGI phaseouts Married filing jointly $118000ndash$138000

Single filer $59000ndash$69000

6

Unearned income Less than $1100 $1100 - $2200

More than $2200

Tax treatment No tax

Taxed at childrsquos rate Taxed at the higher of the

parents top marginal rate or the childs tax rate

Exclusion of US Savings Bond interest

MAGI phaseouts $123550ndash$153550 Married filing jointly

$82350ndash$97350 Others

Bonds must be titled in name(s) of taxpayer(s) only Owner must be age 24 or older at time of issue Must be Series EE issued after 1989 or any Series I bonds Proceeds must be used for qualifed postsecondary education expenses of the taxpayer spouse or dependent

Student loan interest deduction

Maximum deduction $2500

MAGI phaseouts $140000ndash$170000 Married filing jointly

$70000ndash$85000 Others

Kiddie tax Children who have not reached the age of 19 by the end of the tax year are subject to the ldquokiddie taxrdquo rules If the child continues to be a full-time student the rules apply until he or she turns age 24 If a child is age 18 or older and provides more than half of his or her own support the kiddie tax rules do not apply The following tax rate schedule will apply (assumes no earned income)

Estimated annual college costs

2020 2025 2030 2035

Public $23190 $26366 $29976 $34081

Private $51110

$60118 $70715 $83178

Total yearly costs for in-state tuition fees books and room and board (transportation and miscellaneous expenses not included) Base is 2019-2020 school year Costs for all future years projected by Wells Fargo Advisors in November 2019 assuming a 26 national average increase per year for public and a 33 national average increase per year for private Source Trends in College Pricing copy 2019 The College Board Reprinted with permission All rights reserved collegeboardorg

5 2020 tax planning tables

Education planning

Education Savings Accounts (ESA) bull Maximum nondeductible contribution is $2000 per

child per year bull Maximum contribution amount is lowered if a

contributorrsquos modified adjusted gross income (MAGI) is between - $95000 and $110000 for individual filers - $190000 and $220000 for joint filers

bull No contributions can be made if contributorrsquos MAGI exceeds the stated limits or the beneficiary is age 18 or older

bull Interest dividends and capital gains grow tax-deferred and may be distributed federal-income-tax free as long as the money is used to pay qualified education expenses

529 plans bull Earnings accumulate tax-deferred qualified withdrawals

may be federal-income-tax-free bull State-tax incentives available in some states bull Contributions up to $75000 (single) and $150000

(married couples) allowed in one year without a reduction in the applicable giftestate tax exclusion (see page 11) No additional gifting in the current year or next four years without incurring potential gift tax implications

Please consider the investment objectives risk charges and expenses carefully before investing in a 529 savings plan The official statement for a specific plan which contains this and other information can be obtained by calling your Financial Advisor Read it carefully before you invest

American Opportunity Credit

Maximum credit $2500 per student for frst four years of qualifed expenses paid

MAGI phaseouts Married filing jointly $160000ndash$180000

Single filer $80000ndash$90000

Lifetime Learning Credit 20 of frst $10000 (per tax return) of qualifed expenses paid in 2020

Maximum credit

MAGI phaseouts Married filing jointly $118000ndash$138000

Single filer $59000ndash$69000

6

Unearned income Less than $1100 $1100 - $2200

More than $2200

Tax treatment No tax

Taxed at childrsquos rate Taxed at the higher of the

parents top marginal rate or the childs tax rate

Exclusion of US Savings Bond interest

MAGI phaseouts $123550ndash$153550 Married filing jointly

$82350ndash$97350 Others

Bonds must be titled in name(s) of taxpayer(s) only Owner must be age 24 or older at time of issue Must be Series EE issued after 1989 or any Series I bonds Proceeds must be used for qualifed postsecondary education expenses of the taxpayer spouse or dependent

Student loan interest deduction

Maximum deduction $2500

MAGI phaseouts $140000ndash$170000 Married filing jointly

$70000ndash$85000 Others

Kiddie tax Children who have not reached the age of 19 by the end of the tax year are subject to the ldquokiddie taxrdquo rules If the child continues to be a full-time student the rules apply until he or she turns age 24 If a child is age 18 or older and provides more than half of his or her own support the kiddie tax rules do not apply The following tax rate schedule will apply (assumes no earned income)

Estimated annual college costs

2020 2025 2030 2035

Public $23190 $26366 $29976 $34081

Private $51110

$60118 $70715 $83178

Total yearly costs for in-state tuition fees books and room and board (transportation and miscellaneous expenses not included) Base is 2019-2020 school year Costs for all future years projected by Wells Fargo Advisors in November 2019 assuming a 26 national average increase per year for public and a 33 national average increase per year for private Source Trends in College Pricing copy 2019 The College Board Reprinted with permission All rights reserved collegeboardorg

6

Unearned income Less than $1100 $1100 - $2200

More than $2200

Tax treatment No tax

Taxed at childrsquos rate Taxed at the higher of the

parents top marginal rate or the childs tax rate

Exclusion of US Savings Bond interest

MAGI phaseouts $123550ndash$153550 Married filing jointly

$82350ndash$97350 Others

Bonds must be titled in name(s) of taxpayer(s) only Owner must be age 24 or older at time of issue Must be Series EE issued after 1989 or any Series I bonds Proceeds must be used for qualifed postsecondary education expenses of the taxpayer spouse or dependent

Student loan interest deduction

Maximum deduction $2500

MAGI phaseouts $140000ndash$170000 Married filing jointly

$70000ndash$85000 Others

Kiddie tax Children who have not reached the age of 19 by the end of the tax year are subject to the ldquokiddie taxrdquo rules If the child continues to be a full-time student the rules apply until he or she turns age 24 If a child is age 18 or older and provides more than half of his or her own support the kiddie tax rules do not apply The following tax rate schedule will apply (assumes no earned income)

Estimated annual college costs

2020 2025 2030 2035

Public $23190 $26366 $29976 $34081

Private $51110

$60118 $70715 $83178

Total yearly costs for in-state tuition fees books and room and board (transportation and miscellaneous expenses not included) Base is 2019-2020 school year Costs for all future years projected by Wells Fargo Advisors in November 2019 assuming a 26 national average increase per year for public and a 33 national average increase per year for private Source Trends in College Pricing copy 2019 The College Board Reprinted with permission All rights reserved collegeboardorg

7 2020 tax planning tables

Retirement accounts

Pretax 401(k) 403(b) 457 Roth 401(k) or 403(b) Employee maximum

deferral contributions Catch-up contribution

(if age 50 or older) $19500 $6500

Combined limit for Roth 401(k) or Roth 403(b) and pretax traditional 401(k) or pretax 403(b) deferral contributions is $19500 for those younger than 50

Traditional and Roth IRA Catch-up contribution

(if age 50 or older) Maximum contribution $6000 $1000

2020 contributions must be made no later than the tax-fling deadline regardless of tax extensions

Traditional IRA deductibility limits If neither individual nor spouse is a participant in another plan $6000 maximum deduction If the individual is an active participant in another plan

Marriedjoint MAGIdagger Single MAGIdagger Deduction Up to $104000 Up to $65000 $6000Dagger

$104000ndash124000 $65000ndash$75000 Phased out Over $124000 Over $75000 $0

If a spouse (working or nonworking) is not covered by a retirement plan but his or her spouse is covered the spouse who is not covered is allowed full deductibility up to $196000 joint MAGI phased out at $206000 joint MAGI

dagger Modifed adjusted gross income Dagger Maximum deduction is $7000 if age 50 or older Note Phaseout for married fling separately is $0 - $10000

Roth IRA qualifcations bull Contribution amount is limited if modified adjusted gross

income (MAGI) is between ndash $124000 and $139000 for individual returns ndash $196000 and $206000 for marriedjoint filers ndash $0 and $10000 for married filing separate

bull Cannot contribute if MAGI exceeds limits bull Contributions are not deductible

Includes single flers head of household and married fling separately if you did not live with your spouse at any time during the year

8

Maximum elective deferral to SIMPLE IRA and SIMPLE 401(k) plans Catch-up contribution for SIMPLE IRA and SIMPLE 401(k) plans (if age 50 or older) Maximum annual defined contribution plan limit

Maximum compensation for calculating qualified plan contributions Maximum annual defined benefit limit Threshold for highly compensated employee Threshold for key employee in top-heavy plans Maximum SEP contribution is lesser of limit or 25 of eligible income

$ 13500

$ 3000

$ 57000

$285000

$ 230000 $130000 $ 185000

$ 57000

Retirement plan limits

Uniform LifetimeMinimum Distribution Table

Life Expectancy

Factor Age

70 274 71 265 72 256 73 247 74 238 75 229 76 220 77 212 78 203 79 195 80 187 81 179 82 171 83 163 84 155 85 148 86 141 87 134

Life Expectancy

Factor Age

88 127 89 120 90 114 91 108 92 102 93 96 94 91 95 86 96 81 97 76 98 71 99 67 100 63 101 59 102 55 103 52 104 49 105 45

9 2020 tax planning tables

Worker younger than full retirement age $18240

Year worker reaches full retirement age (applies only to earnings for months prior to attaining full retirement age)

$48600

Worker at full retirement age No limit

Up to 50 taxed Up to 85 taxed

Marriedjoint $32000ndash$44000 More than $44000

Single $25000ndash$34000 More than $34000

Married filing 85 taxabledagger

Social Security benefts

Earnings test The earnings test indicates the level of earnings permissible for Social Security benefits recipients without incurring a reduction of benefits These limits are indexed to increases in national earnings

Maximum monthly beneft $3011 This benefit is for an individual who reaches full retirement age in 2020 and earns at least the maximum wage base amount for the best 35 years Information provided by the Social Security Administration

Taxation thresholds Up to a certain percentage of an individualrsquos Social Security benefits is subject to taxation when his or her provisional income exceeds certain threshold amounts

separately

Provisional income generally includes modifed adjusted gross income (MAGI) plus nontaxable interest and one-half of Social Security benefts

dagger There is an exception to this rule if you lived apart from your spouse for the entire year Consult your tax advisor for more information

Social Security tax rates Maximum wage base for Social Security $137700

Employee 620

Employer 620

Self-employed 1240

10

Age attained before the close of the taxable year 40 or less More than 40 but not more than 50 More than 50 but not more than 60 More than 60 but not more than 70 More than 70

Limit on premiums $ 430

$ 810 $ 1630

$ 4350 $ 5430

Medicare tax rates Thresholds Single $200000

Marriedjoint $250000

Marriedseparate $125000

Trustestate $12950

Below threshold Above threshold

Tax rate on employee compensation

Compare thresholds to Medicare wages as reported on IRS Form W-2 Employeersquos tax rate 145 235 Employerrsquos tax rate 145 145

Tax rate on self-employment income Compare threshold to net self-employment income as determined on IRS Form 1040 Schedule SE

290 380 Ownerrsquos rate

Tax rate on net investment income Compare threshold to MAGI

000 380 Investorrsquos tax rate

Includes the 09 Medicare surtax

Health and long-term care Long-term care deduction for medical care

Limitations apply based on type of taxpayer You should consult your tax advisor regarding your situation

Health Savings Account (HSA) limits Maximum contribution Single Family $3550 $7100 $1000 catch-up contribution allowed per individual age 55 or older

Minimum health insurance plan deductibleSingle Family $1400 $2800

Maximum out-of-pocket expensesSingle Family $6900 $13800

11 2020 tax planning tables

Estate gift and generation-skipping transfer tax Gift tax annual exclusion $15000

An individual can give up to $15000 per person per year to any number of beneficiaries (family or nonfamily) without paying gift tax or ldquousing uprdquo any available applicable exclusion amount

Estate and gift taxmdashbasic exclusion $11580000

Estate or gift taxes apply to the extent that your cumulative transfers (lifetime exclusion gifts plus the taxable estate at death) exceed your applicable exclusion Your applicable exclusion consists of your $11580000 basic exclusion plus any ldquounusedrdquo exclusion received from a spouse who predeceased you Portability The election to transfer unused exclusion to a surviving spouse is made by filing an estate tax return The filing deadline is 9 months after death for taxable estates or 2 years after death if a return is filed solely to elect portability (Election is only available if the first spouse died after 12312010)

Generation-skipping transfer (GST) tax exemption $11580000

Estate gift and GST tax rate 40

Applies to transfers in excess of the applicable exclusion GST exemption

12

Mortgage payments Not to exceed 28 of gross (pretax) income

Combined monthly debt Not to exceed 36 of monthly gross (pretax) income

Federal trust and estate income tax Tax rates

If taxable income is The tax is

$0ndash$2600 10 of the taxable income

$2600ndash$9450 $26000 + 24 of excess over $2600

$9450ndash$12950 $190400 + 35 of excess over $9450

$12950 or more $312900 + 37 of excess over $12950

See page 4 for corresponding capital gain and qualifed dividend rates

Corporate income tax bull Tax ratemdash21 bull AMT at corporate level has been eliminated

Note There are no special federal capital gains rates for corporations For corporations capital losses are deductible only against capital gains

Wells Fargo Advisors suggested spending guidelines

13 2020 tax planning tables

$ 23218

$ 50 $ 3000 $ 6000 $ 12000 $ 18000 $ 3326 $ 7387 $ 18400 $ 34818

$ 6000 $ 12000 $ 24000 $ 36000 $ 6652 $ 14774 $ 36800 $ 69636

$ 30000 $ 60000 $ 120000 $ 180000 $ 33260 $ 73870 $ 183998 $ 348181

$ 60000 $ 120000 $ 240000 $ 360000 $ 66520 $ 147741 $ 367997 $ 696363

$ 500

$ 1000

$ 50

$ 100

$ 16470

$ 1000

Compounding At hypothetical rates of return

4 Monthly

investment

$ 100

Amount invested

5 years 10 years

20 years

30 years

Value

Amount invested

Value

Amountinvested

Value

Amount invested

Value

6 Monthly

investment

$ 500

Amount invested

5 years

$ 3000

10 years

$ 6000

20 years

$ 12000

30 years

$ 18000 Value

Amount invested

$ 3506

$ 6000

$ 8235

$ 12000 $ 24000

$ 50477

$ 36000 Value

Amount invested

$ 7012

$ 30000

$ 60000

$ 46435

$ 120000

$ 100954

$ 180000 Value

Amount invested

$ 35059

$ 60000

$ 82349

$ 120000

$ 232176

$ 240000

$ 504769

$ 360000 Value $ 70119 $164699 $ 464351 $ 1009538

8 Monthly

investment

$ 50

$ 100

$ 500

$ 1000

Amount invested

5 years

$ 3000

10 years

$ 6000

20 years

$ 12000

30 years

$ 18000 Value

Amount invested

$ 3698

$ 6000

$ 9208

$ 12000

$ 29647

$ 24000

$ 75015

$ 36000 Value

Amount invested

$ 7397

$ 30000

$ 18417

$ 60000

$ 59295

$ 120000

$ 150030

$ 180000 Value

Amount invested

$ 36983

$ 60000

$ 92083

$ 120000

$ 296474

$ 240000

$ 750148

$ 360000 Value $ 73967 $ 184166 $ 592947 $ 1500295

Values shown are based on investments made at the beginning of each month compounded monthly and do not refect the return of any particular investment These tables are for illustrative purposes only and do not refect the efects of taxes or transaction costs

2020 tax planning tables 14

Wells Fargo Advisors does not render legal or tax advice While this reference guide is not intended to replace your discussions with your appointed tax advisor it may help you comprehend the tax implications of your investments and plan tax efciently

Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services LLC and Wells Fargo Advisors Financial Network LLC Members SIPC separate registered broker-dealers and non-bank afliates of Wells Fargo amp Company

copy 2020 Wells Fargo Clearing Services LLC All rights reservedenspCAR-1219-01626enspIHA-6622872

595437 (1 ea)

8

Maximum elective deferral to SIMPLE IRA and SIMPLE 401(k) plans Catch-up contribution for SIMPLE IRA and SIMPLE 401(k) plans (if age 50 or older) Maximum annual defined contribution plan limit

Maximum compensation for calculating qualified plan contributions Maximum annual defined benefit limit Threshold for highly compensated employee Threshold for key employee in top-heavy plans Maximum SEP contribution is lesser of limit or 25 of eligible income

$ 13500

$ 3000

$ 57000

$285000

$ 230000 $130000 $ 185000

$ 57000

Retirement plan limits

Uniform LifetimeMinimum Distribution Table

Life Expectancy

Factor Age

70 274 71 265 72 256 73 247 74 238 75 229 76 220 77 212 78 203 79 195 80 187 81 179 82 171 83 163 84 155 85 148 86 141 87 134

Life Expectancy

Factor Age

88 127 89 120 90 114 91 108 92 102 93 96 94 91 95 86 96 81 97 76 98 71 99 67 100 63 101 59 102 55 103 52 104 49 105 45

9 2020 tax planning tables

Worker younger than full retirement age $18240

Year worker reaches full retirement age (applies only to earnings for months prior to attaining full retirement age)

$48600

Worker at full retirement age No limit

Up to 50 taxed Up to 85 taxed

Marriedjoint $32000ndash$44000 More than $44000

Single $25000ndash$34000 More than $34000

Married filing 85 taxabledagger

Social Security benefts

Earnings test The earnings test indicates the level of earnings permissible for Social Security benefits recipients without incurring a reduction of benefits These limits are indexed to increases in national earnings

Maximum monthly beneft $3011 This benefit is for an individual who reaches full retirement age in 2020 and earns at least the maximum wage base amount for the best 35 years Information provided by the Social Security Administration

Taxation thresholds Up to a certain percentage of an individualrsquos Social Security benefits is subject to taxation when his or her provisional income exceeds certain threshold amounts

separately

Provisional income generally includes modifed adjusted gross income (MAGI) plus nontaxable interest and one-half of Social Security benefts

dagger There is an exception to this rule if you lived apart from your spouse for the entire year Consult your tax advisor for more information

Social Security tax rates Maximum wage base for Social Security $137700

Employee 620

Employer 620

Self-employed 1240

10

Age attained before the close of the taxable year 40 or less More than 40 but not more than 50 More than 50 but not more than 60 More than 60 but not more than 70 More than 70

Limit on premiums $ 430

$ 810 $ 1630

$ 4350 $ 5430

Medicare tax rates Thresholds Single $200000

Marriedjoint $250000

Marriedseparate $125000

Trustestate $12950

Below threshold Above threshold

Tax rate on employee compensation

Compare thresholds to Medicare wages as reported on IRS Form W-2 Employeersquos tax rate 145 235 Employerrsquos tax rate 145 145

Tax rate on self-employment income Compare threshold to net self-employment income as determined on IRS Form 1040 Schedule SE

290 380 Ownerrsquos rate

Tax rate on net investment income Compare threshold to MAGI

000 380 Investorrsquos tax rate

Includes the 09 Medicare surtax

Health and long-term care Long-term care deduction for medical care

Limitations apply based on type of taxpayer You should consult your tax advisor regarding your situation

Health Savings Account (HSA) limits Maximum contribution Single Family $3550 $7100 $1000 catch-up contribution allowed per individual age 55 or older

Minimum health insurance plan deductibleSingle Family $1400 $2800

Maximum out-of-pocket expensesSingle Family $6900 $13800

11 2020 tax planning tables

Estate gift and generation-skipping transfer tax Gift tax annual exclusion $15000

An individual can give up to $15000 per person per year to any number of beneficiaries (family or nonfamily) without paying gift tax or ldquousing uprdquo any available applicable exclusion amount

Estate and gift taxmdashbasic exclusion $11580000

Estate or gift taxes apply to the extent that your cumulative transfers (lifetime exclusion gifts plus the taxable estate at death) exceed your applicable exclusion Your applicable exclusion consists of your $11580000 basic exclusion plus any ldquounusedrdquo exclusion received from a spouse who predeceased you Portability The election to transfer unused exclusion to a surviving spouse is made by filing an estate tax return The filing deadline is 9 months after death for taxable estates or 2 years after death if a return is filed solely to elect portability (Election is only available if the first spouse died after 12312010)

Generation-skipping transfer (GST) tax exemption $11580000

Estate gift and GST tax rate 40

Applies to transfers in excess of the applicable exclusion GST exemption

12

Mortgage payments Not to exceed 28 of gross (pretax) income

Combined monthly debt Not to exceed 36 of monthly gross (pretax) income

Federal trust and estate income tax Tax rates

If taxable income is The tax is

$0ndash$2600 10 of the taxable income

$2600ndash$9450 $26000 + 24 of excess over $2600

$9450ndash$12950 $190400 + 35 of excess over $9450

$12950 or more $312900 + 37 of excess over $12950

See page 4 for corresponding capital gain and qualifed dividend rates

Corporate income tax bull Tax ratemdash21 bull AMT at corporate level has been eliminated

Note There are no special federal capital gains rates for corporations For corporations capital losses are deductible only against capital gains

Wells Fargo Advisors suggested spending guidelines

13 2020 tax planning tables

$ 23218

$ 50 $ 3000 $ 6000 $ 12000 $ 18000 $ 3326 $ 7387 $ 18400 $ 34818

$ 6000 $ 12000 $ 24000 $ 36000 $ 6652 $ 14774 $ 36800 $ 69636

$ 30000 $ 60000 $ 120000 $ 180000 $ 33260 $ 73870 $ 183998 $ 348181

$ 60000 $ 120000 $ 240000 $ 360000 $ 66520 $ 147741 $ 367997 $ 696363

$ 500

$ 1000

$ 50

$ 100

$ 16470

$ 1000

Compounding At hypothetical rates of return

4 Monthly

investment

$ 100

Amount invested

5 years 10 years

20 years

30 years

Value

Amount invested

Value

Amountinvested

Value

Amount invested

Value

6 Monthly

investment

$ 500

Amount invested

5 years

$ 3000

10 years

$ 6000

20 years

$ 12000

30 years

$ 18000 Value

Amount invested

$ 3506

$ 6000

$ 8235

$ 12000 $ 24000

$ 50477

$ 36000 Value

Amount invested

$ 7012

$ 30000

$ 60000

$ 46435

$ 120000

$ 100954

$ 180000 Value

Amount invested

$ 35059

$ 60000

$ 82349

$ 120000

$ 232176

$ 240000

$ 504769

$ 360000 Value $ 70119 $164699 $ 464351 $ 1009538

8 Monthly

investment

$ 50

$ 100

$ 500

$ 1000

Amount invested

5 years

$ 3000

10 years

$ 6000

20 years

$ 12000

30 years

$ 18000 Value

Amount invested

$ 3698

$ 6000

$ 9208

$ 12000

$ 29647

$ 24000

$ 75015

$ 36000 Value

Amount invested

$ 7397

$ 30000

$ 18417

$ 60000

$ 59295

$ 120000

$ 150030

$ 180000 Value

Amount invested

$ 36983

$ 60000

$ 92083

$ 120000

$ 296474

$ 240000

$ 750148

$ 360000 Value $ 73967 $ 184166 $ 592947 $ 1500295

Values shown are based on investments made at the beginning of each month compounded monthly and do not refect the return of any particular investment These tables are for illustrative purposes only and do not refect the efects of taxes or transaction costs

2020 tax planning tables 14

Wells Fargo Advisors does not render legal or tax advice While this reference guide is not intended to replace your discussions with your appointed tax advisor it may help you comprehend the tax implications of your investments and plan tax efciently

Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services LLC and Wells Fargo Advisors Financial Network LLC Members SIPC separate registered broker-dealers and non-bank afliates of Wells Fargo amp Company

copy 2020 Wells Fargo Clearing Services LLC All rights reservedenspCAR-1219-01626enspIHA-6622872

595437 (1 ea)

9 2020 tax planning tables

Worker younger than full retirement age $18240

Year worker reaches full retirement age (applies only to earnings for months prior to attaining full retirement age)

$48600

Worker at full retirement age No limit

Up to 50 taxed Up to 85 taxed

Marriedjoint $32000ndash$44000 More than $44000

Single $25000ndash$34000 More than $34000

Married filing 85 taxabledagger

Social Security benefts

Earnings test The earnings test indicates the level of earnings permissible for Social Security benefits recipients without incurring a reduction of benefits These limits are indexed to increases in national earnings

Maximum monthly beneft $3011 This benefit is for an individual who reaches full retirement age in 2020 and earns at least the maximum wage base amount for the best 35 years Information provided by the Social Security Administration

Taxation thresholds Up to a certain percentage of an individualrsquos Social Security benefits is subject to taxation when his or her provisional income exceeds certain threshold amounts

separately

Provisional income generally includes modifed adjusted gross income (MAGI) plus nontaxable interest and one-half of Social Security benefts

dagger There is an exception to this rule if you lived apart from your spouse for the entire year Consult your tax advisor for more information

Social Security tax rates Maximum wage base for Social Security $137700

Employee 620

Employer 620

Self-employed 1240

10

Age attained before the close of the taxable year 40 or less More than 40 but not more than 50 More than 50 but not more than 60 More than 60 but not more than 70 More than 70

Limit on premiums $ 430

$ 810 $ 1630

$ 4350 $ 5430

Medicare tax rates Thresholds Single $200000

Marriedjoint $250000

Marriedseparate $125000

Trustestate $12950

Below threshold Above threshold

Tax rate on employee compensation

Compare thresholds to Medicare wages as reported on IRS Form W-2 Employeersquos tax rate 145 235 Employerrsquos tax rate 145 145

Tax rate on self-employment income Compare threshold to net self-employment income as determined on IRS Form 1040 Schedule SE

290 380 Ownerrsquos rate

Tax rate on net investment income Compare threshold to MAGI

000 380 Investorrsquos tax rate

Includes the 09 Medicare surtax

Health and long-term care Long-term care deduction for medical care

Limitations apply based on type of taxpayer You should consult your tax advisor regarding your situation

Health Savings Account (HSA) limits Maximum contribution Single Family $3550 $7100 $1000 catch-up contribution allowed per individual age 55 or older

Minimum health insurance plan deductibleSingle Family $1400 $2800

Maximum out-of-pocket expensesSingle Family $6900 $13800

11 2020 tax planning tables

Estate gift and generation-skipping transfer tax Gift tax annual exclusion $15000

An individual can give up to $15000 per person per year to any number of beneficiaries (family or nonfamily) without paying gift tax or ldquousing uprdquo any available applicable exclusion amount

Estate and gift taxmdashbasic exclusion $11580000

Estate or gift taxes apply to the extent that your cumulative transfers (lifetime exclusion gifts plus the taxable estate at death) exceed your applicable exclusion Your applicable exclusion consists of your $11580000 basic exclusion plus any ldquounusedrdquo exclusion received from a spouse who predeceased you Portability The election to transfer unused exclusion to a surviving spouse is made by filing an estate tax return The filing deadline is 9 months after death for taxable estates or 2 years after death if a return is filed solely to elect portability (Election is only available if the first spouse died after 12312010)

Generation-skipping transfer (GST) tax exemption $11580000

Estate gift and GST tax rate 40

Applies to transfers in excess of the applicable exclusion GST exemption

12

Mortgage payments Not to exceed 28 of gross (pretax) income

Combined monthly debt Not to exceed 36 of monthly gross (pretax) income

Federal trust and estate income tax Tax rates

If taxable income is The tax is

$0ndash$2600 10 of the taxable income

$2600ndash$9450 $26000 + 24 of excess over $2600

$9450ndash$12950 $190400 + 35 of excess over $9450

$12950 or more $312900 + 37 of excess over $12950

See page 4 for corresponding capital gain and qualifed dividend rates

Corporate income tax bull Tax ratemdash21 bull AMT at corporate level has been eliminated

Note There are no special federal capital gains rates for corporations For corporations capital losses are deductible only against capital gains

Wells Fargo Advisors suggested spending guidelines

13 2020 tax planning tables

$ 23218

$ 50 $ 3000 $ 6000 $ 12000 $ 18000 $ 3326 $ 7387 $ 18400 $ 34818

$ 6000 $ 12000 $ 24000 $ 36000 $ 6652 $ 14774 $ 36800 $ 69636

$ 30000 $ 60000 $ 120000 $ 180000 $ 33260 $ 73870 $ 183998 $ 348181

$ 60000 $ 120000 $ 240000 $ 360000 $ 66520 $ 147741 $ 367997 $ 696363

$ 500

$ 1000

$ 50

$ 100

$ 16470

$ 1000

Compounding At hypothetical rates of return

4 Monthly

investment

$ 100

Amount invested

5 years 10 years

20 years

30 years

Value

Amount invested

Value

Amountinvested

Value

Amount invested

Value

6 Monthly

investment

$ 500

Amount invested

5 years

$ 3000

10 years

$ 6000

20 years

$ 12000

30 years

$ 18000 Value

Amount invested

$ 3506

$ 6000

$ 8235

$ 12000 $ 24000

$ 50477

$ 36000 Value

Amount invested

$ 7012

$ 30000

$ 60000

$ 46435

$ 120000

$ 100954

$ 180000 Value

Amount invested

$ 35059

$ 60000

$ 82349

$ 120000

$ 232176

$ 240000

$ 504769

$ 360000 Value $ 70119 $164699 $ 464351 $ 1009538

8 Monthly

investment

$ 50

$ 100

$ 500

$ 1000

Amount invested

5 years

$ 3000

10 years

$ 6000

20 years

$ 12000

30 years

$ 18000 Value

Amount invested

$ 3698

$ 6000

$ 9208

$ 12000

$ 29647

$ 24000

$ 75015

$ 36000 Value

Amount invested

$ 7397

$ 30000

$ 18417

$ 60000

$ 59295

$ 120000

$ 150030

$ 180000 Value

Amount invested

$ 36983

$ 60000

$ 92083

$ 120000

$ 296474

$ 240000

$ 750148

$ 360000 Value $ 73967 $ 184166 $ 592947 $ 1500295

Values shown are based on investments made at the beginning of each month compounded monthly and do not refect the return of any particular investment These tables are for illustrative purposes only and do not refect the efects of taxes or transaction costs

2020 tax planning tables 14

Wells Fargo Advisors does not render legal or tax advice While this reference guide is not intended to replace your discussions with your appointed tax advisor it may help you comprehend the tax implications of your investments and plan tax efciently

Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services LLC and Wells Fargo Advisors Financial Network LLC Members SIPC separate registered broker-dealers and non-bank afliates of Wells Fargo amp Company

copy 2020 Wells Fargo Clearing Services LLC All rights reservedenspCAR-1219-01626enspIHA-6622872

595437 (1 ea)

10

Age attained before the close of the taxable year 40 or less More than 40 but not more than 50 More than 50 but not more than 60 More than 60 but not more than 70 More than 70

Limit on premiums $ 430

$ 810 $ 1630

$ 4350 $ 5430

Medicare tax rates Thresholds Single $200000

Marriedjoint $250000

Marriedseparate $125000

Trustestate $12950

Below threshold Above threshold

Tax rate on employee compensation

Compare thresholds to Medicare wages as reported on IRS Form W-2 Employeersquos tax rate 145 235 Employerrsquos tax rate 145 145

Tax rate on self-employment income Compare threshold to net self-employment income as determined on IRS Form 1040 Schedule SE

290 380 Ownerrsquos rate

Tax rate on net investment income Compare threshold to MAGI

000 380 Investorrsquos tax rate

Includes the 09 Medicare surtax

Health and long-term care Long-term care deduction for medical care

Limitations apply based on type of taxpayer You should consult your tax advisor regarding your situation

Health Savings Account (HSA) limits Maximum contribution Single Family $3550 $7100 $1000 catch-up contribution allowed per individual age 55 or older

Minimum health insurance plan deductibleSingle Family $1400 $2800

Maximum out-of-pocket expensesSingle Family $6900 $13800

11 2020 tax planning tables

Estate gift and generation-skipping transfer tax Gift tax annual exclusion $15000

An individual can give up to $15000 per person per year to any number of beneficiaries (family or nonfamily) without paying gift tax or ldquousing uprdquo any available applicable exclusion amount

Estate and gift taxmdashbasic exclusion $11580000

Estate or gift taxes apply to the extent that your cumulative transfers (lifetime exclusion gifts plus the taxable estate at death) exceed your applicable exclusion Your applicable exclusion consists of your $11580000 basic exclusion plus any ldquounusedrdquo exclusion received from a spouse who predeceased you Portability The election to transfer unused exclusion to a surviving spouse is made by filing an estate tax return The filing deadline is 9 months after death for taxable estates or 2 years after death if a return is filed solely to elect portability (Election is only available if the first spouse died after 12312010)

Generation-skipping transfer (GST) tax exemption $11580000

Estate gift and GST tax rate 40

Applies to transfers in excess of the applicable exclusion GST exemption

12

Mortgage payments Not to exceed 28 of gross (pretax) income

Combined monthly debt Not to exceed 36 of monthly gross (pretax) income

Federal trust and estate income tax Tax rates

If taxable income is The tax is

$0ndash$2600 10 of the taxable income

$2600ndash$9450 $26000 + 24 of excess over $2600

$9450ndash$12950 $190400 + 35 of excess over $9450

$12950 or more $312900 + 37 of excess over $12950

See page 4 for corresponding capital gain and qualifed dividend rates

Corporate income tax bull Tax ratemdash21 bull AMT at corporate level has been eliminated

Note There are no special federal capital gains rates for corporations For corporations capital losses are deductible only against capital gains

Wells Fargo Advisors suggested spending guidelines

13 2020 tax planning tables

$ 23218

$ 50 $ 3000 $ 6000 $ 12000 $ 18000 $ 3326 $ 7387 $ 18400 $ 34818

$ 6000 $ 12000 $ 24000 $ 36000 $ 6652 $ 14774 $ 36800 $ 69636

$ 30000 $ 60000 $ 120000 $ 180000 $ 33260 $ 73870 $ 183998 $ 348181

$ 60000 $ 120000 $ 240000 $ 360000 $ 66520 $ 147741 $ 367997 $ 696363

$ 500

$ 1000

$ 50

$ 100

$ 16470

$ 1000

Compounding At hypothetical rates of return

4 Monthly

investment

$ 100

Amount invested

5 years 10 years

20 years

30 years

Value

Amount invested

Value

Amountinvested

Value

Amount invested

Value

6 Monthly

investment

$ 500

Amount invested

5 years

$ 3000

10 years

$ 6000

20 years

$ 12000

30 years

$ 18000 Value

Amount invested

$ 3506

$ 6000

$ 8235

$ 12000 $ 24000

$ 50477

$ 36000 Value

Amount invested

$ 7012

$ 30000

$ 60000

$ 46435

$ 120000

$ 100954

$ 180000 Value

Amount invested

$ 35059

$ 60000

$ 82349

$ 120000

$ 232176

$ 240000

$ 504769

$ 360000 Value $ 70119 $164699 $ 464351 $ 1009538

8 Monthly

investment

$ 50

$ 100

$ 500

$ 1000

Amount invested

5 years

$ 3000

10 years

$ 6000

20 years

$ 12000

30 years

$ 18000 Value

Amount invested

$ 3698

$ 6000

$ 9208

$ 12000

$ 29647

$ 24000

$ 75015

$ 36000 Value

Amount invested

$ 7397

$ 30000

$ 18417

$ 60000

$ 59295

$ 120000

$ 150030

$ 180000 Value

Amount invested

$ 36983

$ 60000

$ 92083

$ 120000

$ 296474

$ 240000

$ 750148

$ 360000 Value $ 73967 $ 184166 $ 592947 $ 1500295

Values shown are based on investments made at the beginning of each month compounded monthly and do not refect the return of any particular investment These tables are for illustrative purposes only and do not refect the efects of taxes or transaction costs

2020 tax planning tables 14

Wells Fargo Advisors does not render legal or tax advice While this reference guide is not intended to replace your discussions with your appointed tax advisor it may help you comprehend the tax implications of your investments and plan tax efciently

Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services LLC and Wells Fargo Advisors Financial Network LLC Members SIPC separate registered broker-dealers and non-bank afliates of Wells Fargo amp Company

copy 2020 Wells Fargo Clearing Services LLC All rights reservedenspCAR-1219-01626enspIHA-6622872

595437 (1 ea)

11 2020 tax planning tables

Estate gift and generation-skipping transfer tax Gift tax annual exclusion $15000

An individual can give up to $15000 per person per year to any number of beneficiaries (family or nonfamily) without paying gift tax or ldquousing uprdquo any available applicable exclusion amount

Estate and gift taxmdashbasic exclusion $11580000

Estate or gift taxes apply to the extent that your cumulative transfers (lifetime exclusion gifts plus the taxable estate at death) exceed your applicable exclusion Your applicable exclusion consists of your $11580000 basic exclusion plus any ldquounusedrdquo exclusion received from a spouse who predeceased you Portability The election to transfer unused exclusion to a surviving spouse is made by filing an estate tax return The filing deadline is 9 months after death for taxable estates or 2 years after death if a return is filed solely to elect portability (Election is only available if the first spouse died after 12312010)

Generation-skipping transfer (GST) tax exemption $11580000

Estate gift and GST tax rate 40

Applies to transfers in excess of the applicable exclusion GST exemption

12

Mortgage payments Not to exceed 28 of gross (pretax) income

Combined monthly debt Not to exceed 36 of monthly gross (pretax) income

Federal trust and estate income tax Tax rates

If taxable income is The tax is

$0ndash$2600 10 of the taxable income

$2600ndash$9450 $26000 + 24 of excess over $2600

$9450ndash$12950 $190400 + 35 of excess over $9450

$12950 or more $312900 + 37 of excess over $12950

See page 4 for corresponding capital gain and qualifed dividend rates

Corporate income tax bull Tax ratemdash21 bull AMT at corporate level has been eliminated

Note There are no special federal capital gains rates for corporations For corporations capital losses are deductible only against capital gains

Wells Fargo Advisors suggested spending guidelines

13 2020 tax planning tables

$ 23218

$ 50 $ 3000 $ 6000 $ 12000 $ 18000 $ 3326 $ 7387 $ 18400 $ 34818

$ 6000 $ 12000 $ 24000 $ 36000 $ 6652 $ 14774 $ 36800 $ 69636

$ 30000 $ 60000 $ 120000 $ 180000 $ 33260 $ 73870 $ 183998 $ 348181

$ 60000 $ 120000 $ 240000 $ 360000 $ 66520 $ 147741 $ 367997 $ 696363

$ 500

$ 1000

$ 50

$ 100

$ 16470

$ 1000

Compounding At hypothetical rates of return

4 Monthly

investment

$ 100

Amount invested

5 years 10 years

20 years

30 years

Value

Amount invested

Value

Amountinvested

Value

Amount invested

Value

6 Monthly

investment

$ 500

Amount invested

5 years

$ 3000

10 years

$ 6000

20 years

$ 12000

30 years

$ 18000 Value

Amount invested

$ 3506

$ 6000

$ 8235

$ 12000 $ 24000

$ 50477

$ 36000 Value

Amount invested

$ 7012

$ 30000

$ 60000

$ 46435

$ 120000

$ 100954

$ 180000 Value

Amount invested

$ 35059

$ 60000

$ 82349

$ 120000

$ 232176

$ 240000

$ 504769

$ 360000 Value $ 70119 $164699 $ 464351 $ 1009538

8 Monthly

investment

$ 50

$ 100

$ 500

$ 1000

Amount invested

5 years

$ 3000

10 years

$ 6000

20 years

$ 12000

30 years

$ 18000 Value

Amount invested

$ 3698

$ 6000

$ 9208

$ 12000

$ 29647

$ 24000

$ 75015

$ 36000 Value

Amount invested

$ 7397

$ 30000

$ 18417

$ 60000

$ 59295

$ 120000

$ 150030

$ 180000 Value

Amount invested

$ 36983

$ 60000

$ 92083

$ 120000

$ 296474

$ 240000

$ 750148

$ 360000 Value $ 73967 $ 184166 $ 592947 $ 1500295

Values shown are based on investments made at the beginning of each month compounded monthly and do not refect the return of any particular investment These tables are for illustrative purposes only and do not refect the efects of taxes or transaction costs

2020 tax planning tables 14

Wells Fargo Advisors does not render legal or tax advice While this reference guide is not intended to replace your discussions with your appointed tax advisor it may help you comprehend the tax implications of your investments and plan tax efciently

Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services LLC and Wells Fargo Advisors Financial Network LLC Members SIPC separate registered broker-dealers and non-bank afliates of Wells Fargo amp Company

copy 2020 Wells Fargo Clearing Services LLC All rights reservedenspCAR-1219-01626enspIHA-6622872

595437 (1 ea)

12

Mortgage payments Not to exceed 28 of gross (pretax) income

Combined monthly debt Not to exceed 36 of monthly gross (pretax) income

Federal trust and estate income tax Tax rates

If taxable income is The tax is

$0ndash$2600 10 of the taxable income

$2600ndash$9450 $26000 + 24 of excess over $2600

$9450ndash$12950 $190400 + 35 of excess over $9450

$12950 or more $312900 + 37 of excess over $12950

See page 4 for corresponding capital gain and qualifed dividend rates

Corporate income tax bull Tax ratemdash21 bull AMT at corporate level has been eliminated

Note There are no special federal capital gains rates for corporations For corporations capital losses are deductible only against capital gains

Wells Fargo Advisors suggested spending guidelines

13 2020 tax planning tables

$ 23218

$ 50 $ 3000 $ 6000 $ 12000 $ 18000 $ 3326 $ 7387 $ 18400 $ 34818

$ 6000 $ 12000 $ 24000 $ 36000 $ 6652 $ 14774 $ 36800 $ 69636

$ 30000 $ 60000 $ 120000 $ 180000 $ 33260 $ 73870 $ 183998 $ 348181

$ 60000 $ 120000 $ 240000 $ 360000 $ 66520 $ 147741 $ 367997 $ 696363

$ 500

$ 1000

$ 50

$ 100

$ 16470

$ 1000

Compounding At hypothetical rates of return

4 Monthly

investment

$ 100

Amount invested

5 years 10 years

20 years

30 years

Value

Amount invested

Value

Amountinvested

Value

Amount invested

Value

6 Monthly

investment

$ 500

Amount invested

5 years

$ 3000

10 years

$ 6000

20 years

$ 12000

30 years

$ 18000 Value

Amount invested

$ 3506

$ 6000

$ 8235

$ 12000 $ 24000

$ 50477

$ 36000 Value

Amount invested

$ 7012

$ 30000

$ 60000

$ 46435

$ 120000

$ 100954

$ 180000 Value

Amount invested

$ 35059

$ 60000

$ 82349

$ 120000

$ 232176

$ 240000

$ 504769

$ 360000 Value $ 70119 $164699 $ 464351 $ 1009538

8 Monthly

investment

$ 50

$ 100

$ 500

$ 1000

Amount invested

5 years

$ 3000

10 years

$ 6000

20 years

$ 12000

30 years

$ 18000 Value

Amount invested

$ 3698

$ 6000

$ 9208

$ 12000

$ 29647

$ 24000

$ 75015

$ 36000 Value

Amount invested

$ 7397

$ 30000

$ 18417

$ 60000

$ 59295

$ 120000

$ 150030

$ 180000 Value

Amount invested

$ 36983

$ 60000

$ 92083

$ 120000

$ 296474

$ 240000

$ 750148

$ 360000 Value $ 73967 $ 184166 $ 592947 $ 1500295

Values shown are based on investments made at the beginning of each month compounded monthly and do not refect the return of any particular investment These tables are for illustrative purposes only and do not refect the efects of taxes or transaction costs

2020 tax planning tables 14

Wells Fargo Advisors does not render legal or tax advice While this reference guide is not intended to replace your discussions with your appointed tax advisor it may help you comprehend the tax implications of your investments and plan tax efciently

Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services LLC and Wells Fargo Advisors Financial Network LLC Members SIPC separate registered broker-dealers and non-bank afliates of Wells Fargo amp Company

copy 2020 Wells Fargo Clearing Services LLC All rights reservedenspCAR-1219-01626enspIHA-6622872

595437 (1 ea)

13 2020 tax planning tables

$ 23218

$ 50 $ 3000 $ 6000 $ 12000 $ 18000 $ 3326 $ 7387 $ 18400 $ 34818

$ 6000 $ 12000 $ 24000 $ 36000 $ 6652 $ 14774 $ 36800 $ 69636

$ 30000 $ 60000 $ 120000 $ 180000 $ 33260 $ 73870 $ 183998 $ 348181

$ 60000 $ 120000 $ 240000 $ 360000 $ 66520 $ 147741 $ 367997 $ 696363

$ 500

$ 1000

$ 50

$ 100

$ 16470

$ 1000

Compounding At hypothetical rates of return

4 Monthly

investment

$ 100

Amount invested

5 years 10 years

20 years

30 years

Value

Amount invested

Value

Amountinvested

Value

Amount invested

Value

6 Monthly

investment

$ 500

Amount invested

5 years

$ 3000

10 years

$ 6000

20 years

$ 12000

30 years

$ 18000 Value

Amount invested

$ 3506

$ 6000

$ 8235

$ 12000 $ 24000

$ 50477

$ 36000 Value

Amount invested

$ 7012

$ 30000

$ 60000

$ 46435

$ 120000

$ 100954

$ 180000 Value

Amount invested

$ 35059

$ 60000

$ 82349

$ 120000

$ 232176

$ 240000

$ 504769

$ 360000 Value $ 70119 $164699 $ 464351 $ 1009538

8 Monthly

investment

$ 50

$ 100

$ 500

$ 1000

Amount invested

5 years

$ 3000

10 years

$ 6000

20 years

$ 12000

30 years

$ 18000 Value

Amount invested

$ 3698

$ 6000

$ 9208

$ 12000

$ 29647

$ 24000

$ 75015

$ 36000 Value

Amount invested

$ 7397

$ 30000

$ 18417

$ 60000

$ 59295

$ 120000

$ 150030

$ 180000 Value

Amount invested

$ 36983

$ 60000

$ 92083

$ 120000

$ 296474

$ 240000

$ 750148

$ 360000 Value $ 73967 $ 184166 $ 592947 $ 1500295

Values shown are based on investments made at the beginning of each month compounded monthly and do not refect the return of any particular investment These tables are for illustrative purposes only and do not refect the efects of taxes or transaction costs

2020 tax planning tables 14

Wells Fargo Advisors does not render legal or tax advice While this reference guide is not intended to replace your discussions with your appointed tax advisor it may help you comprehend the tax implications of your investments and plan tax efciently

Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services LLC and Wells Fargo Advisors Financial Network LLC Members SIPC separate registered broker-dealers and non-bank afliates of Wells Fargo amp Company

copy 2020 Wells Fargo Clearing Services LLC All rights reservedenspCAR-1219-01626enspIHA-6622872

595437 (1 ea)

2020 tax planning tables 14

Wells Fargo Advisors does not render legal or tax advice While this reference guide is not intended to replace your discussions with your appointed tax advisor it may help you comprehend the tax implications of your investments and plan tax efciently

Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services LLC and Wells Fargo Advisors Financial Network LLC Members SIPC separate registered broker-dealers and non-bank afliates of Wells Fargo amp Company

copy 2020 Wells Fargo Clearing Services LLC All rights reservedenspCAR-1219-01626enspIHA-6622872

595437 (1 ea)

Wells Fargo Advisors does not render legal or tax advice While this reference guide is not intended to replace your discussions with your appointed tax advisor it may help you comprehend the tax implications of your investments and plan tax efciently

Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services LLC and Wells Fargo Advisors Financial Network LLC Members SIPC separate registered broker-dealers and non-bank afliates of Wells Fargo amp Company

copy 2020 Wells Fargo Clearing Services LLC All rights reservedenspCAR-1219-01626enspIHA-6622872

595437 (1 ea)