Retirement

In 2013 wages up to $113,700 are subject to social security tax and the maximum social security withholding would be $7049.40.
Employers should withhold Social Security taxes (6.2 percent) from employee's wages up to $113,700 and withhold Medicare tax (1.45 percent) on all wages.
In 2012 wages up to $110,100 are subject to social security tax and the maximum social security withholding would be $6826.20.
Employers should withhold Social Security taxes (4.2 percent) from employee's wages up to $110,100 and withhold Medicare tax (1.45 percent) on all wages.

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.

If your birth year is:
1943-1954 the your full retirement age is 66
1955 the your full retirement age is 66 and 2 months
1956 the your full retirement age is 66 and 4 months
1957 the your full retirement age is 66 and 6 months
1958 the your full retirement age is 66and 8 months
1959 the your full retirement age is 66 and 10 months
1960 and after the your full retirement age is 67

Yes, Pension Plan Limitations have increased. The maximum amount that an employee may elect to defer to an Code Sec. 401(k) cash or deferred compensation plan is $17,500 in the 2013 tax year (up from $17,000 in 2012). The maximum amount that an employee/participant may elect to defer to a savings incentive match plan for employees (SIMPLE plan) remains at $12,000. The limitation on total annual contributions to defined contribution plans is $51,000 (up from $50,000 in 2012). The annual benefit limit for defined benefit plans is $205,000 (up from $200,000 in 2012). The limitation on deferrals for Code Sec. 457 deferred compensation plans of state and local governments and tax-exempt organizations increases from $17,000 to $16,500 in 2012. The limitation used in the definition of a highly compensated employee remains the same from $110,000 to $115,000 in 2013.

There is currently no provision in the code which allows for distributions from any IRA to pay for college education without incurring severe tax ramifications. We recommend that you consider distributions from your IRA to pay for college costs as your last choice. Explore other options first.

A Roth IRA is an individual retirement plan that bears many similarities to the traditional IRA, but contributions are not tax deductible and qualified distributions are tax free.
Similar to other retirement plan accounts, non-qualified distributions from a Roth IRA may be subject to a penalty upon withdrawal.
A qualified distribution is one that is taken at least five years after the taxpayer establishes his or her first Roth IRA and when he or she is age 59.5, disabled, using the withdrawal to purchase a first home (limit $10,000), or deceased (in which case the beneficiary collects). Since qualified distributions from a Roth IRA are always tax free,

The biggest benefit for a business with a Simple IRA plan is that it provides a very easy way to provide an employee retirement option without all the technical complications of 401Ks and similar account plans. Second, the establishment and maintenance costs to run a Simple IRA plan are a big plus for the cost-conscious business. Additional benefits include No special plan-level tax reporting is required for the employer annually. No discrimination testing is necessary. There is no requirement on the employer to track vesting. All contributions are immediately 100% vested (at the point of deposit the employee owns the full amount in the retirement account without any time delay).

A Roth IRA is a special non-deductible IRA. Even though you contribute to the account with your after-tax dollars, all withdrawals are tax free if you meet the following conditions: you are at least 59 and a half and an account has been in existence for at least five years.
In other words, you will never pay any taxes on earnings that your IRA fund will generate after turning 59 and a half. There are no mandatory minimum distributions at age 70 and a half, as in the case of a traditional IRA plan.
This feature allows passing on more savings to your beneficiaries if you wish to do so. You can withdraw money from your Roth IRA at any time without paying taxes up to the amount of your contributions. Dipping into the earnings will have no tax consequences.
There is no age limit on contributions. Every person with earned income, within limits established by the IRS (in general, your modified adjusted gross income must be less than $110,000), is eligible to open a Roth IRA.
For this purpose, the IRS considers as earned income wages, salaries and money made from being self-employed. Other income is considered passive (dividends, interest, rental properties etc.) and cannot be used to fund a Roth Individual Retirement Account.

The biggest benefit for a business with a Simple IRA plan is that it provides a very easy way to provide an employee retirement option without all the technical complications of 401Ks and similar account plans. Second, the establishment and maintenance costs to run a Simple IRA plan are a big plus for the cost-conscious business. Additional benefits include No special plan-level tax reporting is required for the employer annually. No discrimination testing is necessary. There is no requirement on the employer to track vesting. All contributions are immediately 100% vested (at the point of deposit the employee owns the full amount in the retirement account without any time delay).