2013 Tax Brackets and Retirement Contribution Limits

With the political wrangling that took place at the first of the year, we wanted to pass along some basic tax information that is now in place. Below you will find the new income tax brackets, some basic new tax rules, and the new retirement account contribution limits for 2013.

2013 Federal Income Tax Brackets

Marginal Tax Rate	Married Filing Jointly	Single
10%	$17,850 and less	$8,925 and less
15%	$17,851 – $72,500	$8,926 – $36,250
25%	$72,501 – $146,400	$36,251 – $87,850
28%	$146,401 – $223,050	$87,851 – $183,250
33%	$223,051 – $398,350	$183,251 – $398,350
35%	$398,351 – $450,000	$398,351 – $400,000
39.6%	$450,001 and higher	$400,001 and higher

New Tax Basics for 2013

• Long-term capital gains and dividends taxed at 0% for the first two brackets, 20% for the top bracket, and remain at 15% for everyone else
• Payroll tax returns to 6.2%, from 4.2%, for everyone
• Medicare withholdings increase 0.9% for amounts over $250K married ($200K single)
• Additional 3.8% surtax on investment income for those with AGI over $250K married ($200K single)

2013 Federal Limits for Retirement Accounts

Account Type	Contribution Limit	Additional Contribution for Those Over 50
401(k), 403(b), and 457	$17,500	$5,500
SIMPLE IRA	$12,000	$2,500
SEP-IRA	25% of comp. up to $51,000	None
Individual 401(k)	25% of comp. + $17,500, up to $51,000	$5,500
Traditional IRA and Roth IRA	$5,500	$1,000

While these numbers might be boring to you, they are important to know for planning purposes -  your finances will thank you later. If you have any burning portfolio or planning questions, don't hesitate to use me as a resource. Also, don't forget, you have until April 15, 2013 to max out your IRAs for 2012! 


Disclaimer: This post is intended to provide surface-level information only, and should not be relied on for investment or tax planning purposes. Please consult your investment advisor and/or tax advisor for reliable information regarding your specific circumstances.