2013 money goodies no matter who wins the election
By Dian Vujovich
With all the talk of fiscal cliffs, financial responsibilities, debt solutions, tax increases or decreases, etc. etc., there is some good, and ehh, money-related news coming our way that isn’t dependent upon who will be residing in the White House in 2013.
Let’s begin with the oldsters. About 56 million Social Security recipients will see their monthly checks a bit plumper beginning in January. The increase amounts to 1.7 percent. That adds about $21 a month to the average S.S. check —it’s $1,237 a month. Or, about $252 a year. That’s roughly enough for a few cases of cheap wine or dinner for one at Per Se in NYC.
On the other side of that coin, there is also a hike coming in the amount of wages workers will be required to pay Social Security taxes on: The limit moves from $110,100 a year to $113,700. Hum.
Remaining in the tax arena, in 2013 individuals will be able to give away 1000 bucks more than they could this year. The tax-free gift amount moves to $14,000 from $13,000 or $28,000 a couple.
Anyone living in Paris, San Miguel or anywhere else outside of the U.S. will be able to exclude more of his or her taxable income. —$2500 more. The limits in 2013 move to $97,600 from $95,100.
And there’s more good news: Anyone who seriously wants to create a retirement nest egg will have more opportunity to add to their qualified retirement accounts in hopes of meeting that goal.
Those participating in a 401(k), 403(b), a Thrift Savings Plan, profit-sharing plans and most 457 plans will be able to contribute 500 bucks more to those accounts in 2013. That ups an employee’s contribution limit to $17,500 from $17,000. And the max for SEP contributions increases $5000. It moves from $250,000 this year to $255,000.
On the other side of that coin, employees over 50 won’t see any increase in catch-up contributions because the contribution limit remains at $5,500. Hum.
Of course, I’ve only scratched the surface here. To view an easy to read and understand table about these retirement-related cost of living limits from the IRS visit: http://tinyurl.com/95euqlc .
To read more articles, please visit the column archive.