Investment and Finance

For individuals, the tax will be reported on, and paid with Form 8960 and on Form 1040.
For Estates and Trusts, the tax will be reported on, and paid with, the Form 1041.

To the extent that gains are not otherwise offset by capital losses, the following gains are common examples of items taken into account in computing Net Investment Income:
1.Gains from the sale of stocks, bonds, and mutual funds.
2.Capital gain distributions from mutual funds.
3.Gain from the sale of investment real estate (including gain from the sale of a second home that is not a primary residence).
Gains from the sale of interests in partnerships and S corporations (to the extent you were a passive owner).

Wages, unemployment compensation; operating income from a nonpassive business, Social Security Benefits, alimony, tax-exempt interest, self-employment income and distributions from certain Qualified Plans.

In general, investment income includes, but is not limited to: interest, dividends, capital gains, rental and royalty income, non-qualified annuities, income from businesses involved in trading of financial instruments or commodities, and businesses that are passive activities to the taxpayer.
To calculate your Net Investment Income, your investment income is reduced by certain expenses properly allocable to the income

Individuals will owe the tax if they have Net Investment Income and also have modified adjusted gross income over the following thresholds:
Married Filing jointly & Qualifying widow(er) $250,000
Single or Head of Household $200,000
Married filing separately $125,000

IRA (Traditional or Roth) Deadline to establish the plan and the Deadline to fund the plan is April 15th of the following year.
SEP IRA - Deadline to establish the plan is the due date of the tax return, including extensions and the Deadline to fund the plan is due date of the tax return, including extensions.
Simple IRA - Deadline to establish the plan is October 1st of that year and the Deadline to fund the plan for the Employee contributions must be withheld from pay by December 31st and remitted to the investment firm as soon as reasonably possible and the Employer contribution must be made by the tax return due date, including extensions.
401-K or 403(b)- Deadline to establish the plan is October 1st of that year for safe harbor plans, otherwise December 31st of that year. Deadline to fund the plan for the Employee contributions must be withheld from pay by December 31st and remitted to the investment firm as soon as reasonably possible and the Employer contribution must be made by the tax return due date, including extensions.
Defined Benefit Plans and Profit Sharing Plans and Keough Plans must be set up by Dec 31st of that tax year.

IRA Contributions $5,500 - IRA Catch-up Contributions $1,000 - Defined Benefit Plan Benefit $205,000 - Defined Contribution Plan Allocation $51,000 - 401(K) or 403(b) Salary reduction deferrals $17,500 - 401(k) or 403(b) Catch-up Contributions $5,500 - SIMPLE plans $12,000 - SIMPLE plan Catch-up Contributions $2,500 - Salary for pension plan $255,000 - Salary for highly compensated employee $115,000 - Salary for Key employee $165,000 - Salary for SEP eligibility $550 Social Security Taxable Wage base $113,700 -

The limit on employee elective deferrals is $17,500 for 2013. $17,000 for 2012 and $23,000 if age 50 or older ($22,500 in 2012)
The catch up contribution limit for employees 50 and over remains unchanged at $5,500.
Generally, all elective deferrals made to all plans in which you participate are aggregated to determine if you have exceeded these limits.

IRA Contributions $5,500 - IRA Catch-up Contributions $1,000 - Defined Benefit Plan Benefit $205,000 - Defined Contribution Plan Allocation $51,000 - 401(K) or 403(b) Salary reduction deferrals $17,500 - 401(k) or 403(b) Catch-up Contributions $5,500 - SIMPLE plans $12,000 - SIMPLE plan Catch-up Contributions $2,500 - Salary for pension plan $255,000 - Salary for highly compensated employee $115,000 - Salary for Key employee $165,000 - Salary for SEP eligibility $550 - Social Security Taxable Wage base $113,700 -