Retirement

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.

If you are receiving survivor Social Security benefits because your spouse has died, you will not lose the survivor benefits if you remarry as long as you are age 60 or older. If you remarry, you might see your monthly Social Security check increase because you may qualify for higher benefits based on your new spouse's earnings history. You have an option to choose the higher of the two amounts. If you have children who are also receiving benefits, their status will be unaffected by your remarriage.

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 nondectible 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 $112,000, The phase-out range is $112,000 to $127,000 for married couples filing jointly and from $173,000 to $183,000 for non MFJ taxpayers except MFS which is $ between $0 and $10.000), 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 can not be used to fund a Roth Individual Retirement Account.

Some advantages of a SEP Simplified Employee Pension Plan are: Contributions to a SEP are tax deductible and your business pays no taxes on the earnings on the investments. You are not locked into making contributions every year. In fact, you decide each year whether, and how much, to contribute to your employees’ SEP-IRAs. Generally, you do not have to file any documents with the government. Sole proprietors, partnerships, and corporations, including S corporations, can set up SEPs. You may be eligible for a tax credit of up to $500 per year for each of the first 3 years for the cost of starting the plan. Administrative costs are low.

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).