| Year | Under age 50 | Age 50+ |
|---|---|---|
| 2012 | $5,000 | $6,000 |
IRA and Tax Tables 2012
Roth IRA Eligibility
| Year | If your tax status is... | ... you can contribute to a Roth IRA if your modified adjusted gross income is less than... |
|---|---|---|
| 2012 | Married, filing jointly | $183,000 |
| 2012 | Single | $125,000 |
Traditional IRA Deductions
If you do participate in a retirement plan at work, use this IRS table to determine if you can deduct your 2012 Traditional IRA contribution:
Roth IRA Conversion Eligibility
| Year | Eligibility |
|---|---|
| 2010 | Anyone Can |
| 2011 | Still Anyone Can! |
| 2012 | Yes, Still Anyone Can! |
SEP IRA Contribution Levels
Here's what you can contribute to a SEP IRA:
| Year | Status | Maximum Contribution | Deductible |
|---|---|---|---|
| 2012 | W-2 Income | Up to 25% of compensation, but no more than $50,000. | Up to 20% of compensation |
| 2012 | Self Employed | Up to 20% of compensation, but no more than $50,000. | Yes (100%) |
2012 Federal Tax Brackets
| Marginal Tax Rate | Single | Married Filing Jointly or Qualifying Widow(er) | Married Filing Separately |
|---|---|---|---|
| 35% | $388,351 and more | $388,351 and more | $194,176 and more |
| 33% | $178,651 - $388,350 | $217,451 - $388,350 | $108,726 - $194,175 |
| 28% | $85,651 - $178,650 | $142,701 - $217,450 | $71,351 - $108,725 |
| 25% | $35,351 - $85,650 | $70,701 - $142,700 | $35,351 |
Federal Estate Tax Levels
At death, a surviving spouse's estate will owe estate taxes on the net value that exceeds the annual exemption:
| Year | Exempt from Tax | Estate-Tax Rate |
|---|---|---|
| 2012 | $5.12 million per person with portability | Top rate of 35% |
Generation-Skipping Transfer (GST) Tax
Tax on assets transferred to non-spouse heirs at death:
| Year | Exempt from Tax | GST tax rate |
|---|---|---|
| 2012 | $5.12 million per person (no portability) | 35% |
Annual Gift Tax Exclusion
You may give the following amount to an individual, free of gift tax:
| Year | Annual Exclusion |
|---|---|
| 2012 | $13,000 |
IRA Minimum Distribution Tables
When owners of a Traditional IRA reach age 70½, they are required to take annual minimum distributions. The amount changes each year. Simply divide your IRA's value at the end of each year by the distribution period listed next to your age in the following IRS charts:
Uniform Lifetime Table
This table is the new life expectancy table to be used by all IRA owners to calculate lifetime distributions (unless your beneficiary is your spouse who is more than 10 years younger than you). In that case, you would not use this table, you would use the actual joint life expectancy of you and your spouse based on the regular joint life expectancy table. The Uniform Distribution Table is never used by IRA beneficiaries to compute required distributions on their inherited IRAs.
Joint Life Expectancy Table
This table is used only for lifetime distributions and only when the spousal exception applies (when the spouse is the sole beneficiary for the entire year and is more than 10 years younger than the IRA owner). Beneficiaries never use this table.
Single Life Expectancy Table
(to be used for calculating post-death required distributions to beneficiaries)
Designated beneficiaries use this single life expectancy table based on their age in the year after the IRA owner's death. That factor is reduced by one for each succeeding distribution year. Spouse beneficiaries who do not elect to the roll the IRA over or treat it as their own, also use the single life table, but they can recalculate each year.