Retirement

The Social Security Administration, who made the wage base 2013 announcement (The wage base in 2013 is $113,700) also announced that people receiving social security benefits will get a cost of living adjustment (or COLA) adjustment in 2013. Social security benefits will go up 1.7% in 2013. They increased 3.6% in 2012.

If you retire in 2013, the maximum benefit for a worker retireing at full retirement age is $2,533 a month = $30,396 a year. ($2,513 a month in 2012, $30,156 a year),
If you are age 62 in 2013 the maximum you would receive is $1,923, $23,076 a year.
If you are age 70 in 2013 the maximum you would receive is $3,350, $40,020 a year.

For each quarter of coverage the Earnings needed to earn one Social Security Credit is $1,160 ($1130 in 2012)

A widow can begin drawing the full amount of her late husband's Social Security when she is as young as 60. Then she can choose to leave her own Social Security alone, allowing it to grow in value until her full retirement age or age 70.
A widow/widower can begin benefits based on his or her own earnings record and later switch to survivors benefits or begin with survivors benefits and later switch to benefits based on his or her own record.
This is true even if the surviving spouse is filing before full retirement age. You can't do that with spousal benefits.

Your Social Security payment is figured using a complex calculation based on a 35-year average of your covered wages. Each year's wages are adjusted for inflation before being averaged.
If you worked longer than 35 years, the government will use the highest 35 years.
If you worked for less than 35 years, they'll average in zeros for the years you are lacking.
If you can avoid zeros by working a couple of years longer, you'll increase your Social Security payment.

Once an ex-spouse passes away, you'll be treated just like a widow or widower. If you are at least 60, you'll be able to collect your late-spouse's benefit and allow your own benefit to grow unclaimed until you reach age 70, when you can switch if your own is higher,
The longer your ex-spouse delays claiming Social Security, the better it is for you. You will get to claim half of his or her maximum Social Security. Or once you and your ex-spouse reach full retirement age (66-68) you can claim half your ex's benefit and let your own grow untouched until you're 70.

In 2013, the maximum contribution is $5,500 if you are under age 50 and $6,500 if you are older than age 50. However, you are subject to the phase out rules, based upon your income level. Please find the information on phase out rules or contact a local CPA for greater details and how it impacts our situation.
In 2014: The AGI phase-out range for taxpayers making contributions to a Roth IRA is $181,000 to $191,000 for married couples filing jointly, up from $178,000 to $188,000 in 2013.
For singles and heads of household, the income phase-out range is $114,000 to $129,000, up from $112,000 to $127,000.
For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000

In 2016, the AGI phase-out range for taxpayers making contributions to a Roth IRA is $184,000 to $194,000 for married couples filing jointly, up from $183,000 to $193,000 in 2015.
For singles and heads of household, the income phase-out range is $117,000 to $132,000, up from $116,000 to $131,000.
For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
In 2015, the AGI phase-out range for taxpayers making contributions to a Roth IRA is $183,000 to $193,000 for married couples filing jointly, up from $181,000 to $191,000 in 2014.
For singles and heads of household, the income phase-out range is $116,000 to $131,000, up from $114,000 to $129,000.
For a married individual filing a separate return, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
In 2014, For the filing status of: Married Filing Jointly AGI Phase-out range = $181,000 - $191,000
For the filing status of: Single AGI Phase-out range = $114,000 - $129,000
For the filing status of: Married filing Separately AGI Phase-out range = 0 - $10,000

If you are under full retirement age (ages 66-67 depending on date of birth) for the entire year, SSA deducts $1 from your benefit payments for every $2 you earn above the annual limit. For 2013, that limit is $15,120.
In the year you reach full retirement age, SSA deducts $1 in benefits for every $3 you earn above a different limit, but SS only counts earnings before the month you reach your full retirement age. If you will reach full retirement age in 2013, the limit on your earnings for the months before full retirement age is $40,080.
Starting with the month you reach full retirement age, you can get your benefits with no limit on your earnings.