2013 Key Financial Data

• Annual Gift Exclusion: $14,000
• IRA and Roth IRA Contribution Limits: $5,500 plus another $1,000 for individuals over 50
• 401(k), 403(b) and TSP Contribution Limits: $17,500 plus another $5,500 for individuals over 50
• SEP IRA Contribution Limits: 25% of compensation or maximum of $51,000
• Qualified Charitable Distributions: Through 2013, IRA holders over 70 ½ can exclude from up to $100,000 from income for qualified distributions made to a charitable organization.
• Top Federal Tax Rate: 39.6% on income over $450,000(MFJ) or $400,000(Single)
• Personal and Dependent Exemption: $3,900
• Standard Deduction: $12,200 (MFJ), $8,950 (HoH) or $6,100 (Single)
• Estate Tax Exclusion: $5,250,000
• Estate Tax Rate on amounts greater than exclusion of $5,250,000: 40%
• Top CA State Tax Rate: 13.3% on income over $1,000,000 (MFJ) and $500,000 (Singe / MFS)
• Long –Term Capital Gains: 15% for those in the 25-35% tax bracket / 20% for those in the 39.6 bracket.
• Employee and Employer Tax Rate for Social Security: 6.2% each
• Employee and Employer Tax Rate for Medicare: 1.45% each
• Social Security:

• Maximum Monthly Benefit: $2,533 if FRA* in 2013
• Retirement earnings exempt amounts:
• $15,120 under FRA
• $40,080 during year reach FRA
• No limit after FRA
• Tax on benefits :  Income brackets  for 0%, 50% and 85%
• Filing Status: Single, Head of Household, Married Filing Separately

AGI + Provisional Income** Under $25,000                                  0%

AGI + Provisional Income $25,000-$34,000                                  50%

AGI + Provisional Income Over $34,000                                       85%

• Filing Status: Married Filing Jointly

AGI + Provisional Income Under $32,000                                       0%

AGI + Provisional Income $32,000-$44,000                                   50%

AGI + Provisional Income Over $44,000                                        85%

*FRA = Full Retirement Age

  **Provisional Income = Tax-exempt interest plus 50% of Social Security Benefit

• MAGI cliff brackets for Medicare part B & D (Supplemental Insurance & Prescription Drugs).