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2012 Key Numbers
 

2012 Key Numbers

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A compilation of key financial and tax numbers. It thought this would be helpful to my financial services, CPA and attorney friends. But it is good information really for anyone. Feel free to ...

A compilation of key financial and tax numbers. It thought this would be helpful to my financial services, CPA and attorney friends. But it is good information really for anyone. Feel free to download and share.

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    2012 Key Numbers 2012 Key Numbers Document Transcript

    • Ameriprise FinancialLarry W. Yelverton, CRPC® Financial Advisor 738 N. Ashley Ridge Loop Shreveport, LA 71106 office: 318-861-3521 2012 Key Numbers larry.2.yelverton@ampf.com www.ameripriseadvisors.com/larry.2.yelverton/ May 09, 2012
    • Individual Income Tax PlanningAdoption credit 2011 2012Maximum credit $13,360 $12,650Phaseout threshold amount $185,210 $189,710Completed phaseout amount $225,210 $229,710afterAlternative Minimum Tax (AMT)Maximum AMT exemption 2011 2012amountMarried filing jointly or $74,450 $45,000surviving spouseSingle or head of household $48,450 $33,750Married filing separately $37,225 $22,500AMT income exemption 2011 2012phaseout thresholdMarried filing jointly or $150,000 $150,000surviving spouseSingle or head of household $112,500 $112,500Married filing separately $75,000 $75,000Charitable deductionsUse of auto 2011 2012Deductible standard mileage $0.14 $0.14rateCharitable fundraising 2011 2012"insubstantial benefit"limitationLow-cost article (re: unrelated $9.70 $9.90business income)Gifts to donor in return for 2011 2012contributionToken gift maximum cost1 $9.70 $9.90Minimum contribution amount1 $48.50 $49.502% threshold amount2 $97 $991 Contribution is fully deductible if minimum contribution amount is met and cost of token giftdoes not exceed maximum Page 2 of 26, see disclaimer on final page
    • 2 Charitable contribution is fully deductible if the benefit received by the donor doesnt exceed thelesser of the threshold amount or 2% of the amount of the contributionChild tax credit 2011 2012Maximum credit per qualifying $1,000 $1,000childPhaseout -- credit reduced 2011 2012by $50 for each $1,000 orfraction thereof of MAGIover:Single $75,000 $75,000Married Filing Jointly $110,000 $110,000Married Filing Separately $55,000 $55,000Refundability -- up to 2011 2012specified percentage ofearned income in excess ofspecified amountPercentage 15% 15%Amount $3,000 $3,000Classroom expenses of elementary and secondary school teachers 2011 2012Maximum above-the-line $250 N/AdeductionEarned income tax credit (EITC) 2011 2012Excessive investment income $3,150 $3,200limit ("disqualified incomelimit")Maximum amount of EITC 2011 2012per number of children0 children $464 $4751 child $3,094 $3,1692 children $5,112 $5,2363 or more children $5,751 $5,891 Page 3 of 26, see disclaimer on final page
    • Maximum amount of earned 2011 2012income on which EITC isbased (earned income overthis amount but under thethreshold phaseout amountwill not change the amountof the credit received)0 children $6,070 $6,2101 child $9,100 $9,3202 or more children $12,780 $13,090Threshold phaseout amount 2011 2012for joint filers per number ofchildren0 children $12,670 $12,9801 child $21,770 $22,3002 children $21,770 $22,3003 or more children $21,770 $22,300Threshold phaseout amount 2011 2012for other filers per number ofchildren0 children $7,590 $7,7701 child $16,690 $17,0902 children $16,690 $17,0903 or more children $16,690 $17,090Completed phaseout amount 2011 2012for joint filers per number ofchildren0 children $18,740 $19,1901 child $41,132 $42,1302 children $46,044 $47,1623 or more children $49,078 $50,270Completed phaseout amount 2011 2012for other filers per number ofchildren0 children $13,660 $13,9801 child $36,052 $36,9202 children $40,964 $41,9523 or more children $43,998 $45,060 Page 4 of 26, see disclaimer on final page
    • Expatriation 2011 2012An individual with "average $147,000 $151,000annual net income tax" of morethan this amount for the fivetaxable years ending beforehis or her loss of citizenship isa covered expatriate for thepurposes of IRC §877A(g)(1)IRC §877A(3) exclusion $636,000 $651,000amountForeign earned income 2011 2012Exclusion amount $92,900 $95,100Itemized deductions 2011 2012Itemized deductions threshold N/A N/Aphaseout amount for MFS:Itemized deductions threshold N/A N/Aphaseout amount for all others:Kiddie taxUnearned income limit 2011 2012Amount exempt from tax $950 $950Additional amount taxed at $950 $950childs rateUnearned income over this $1,900 $1,900amount taxed at parents rate 2011 2012Election to include childs $950 - $9,500 $950 - $9,500income on parents return --childs gross incomerequirement 2011 2012AMT exemption for child Lesser of $6,800 + childs Lesser of $6,950 + childssubject to kiddie tax: earned income or $48,450 earned income or $33,750 Page 5 of 26, see disclaimer on final page
    • Making Work Pay tax creditMaximum credit 2011 2012Filing status other than married N/A1 N/A1filing jointlyMarried filing jointly N/A1 N/A11 Credit not extended, but related benefit provided by 2% reduction in employee Social Securitypayroll taxes (also applies to self-employment tax of self-employed individuals) for 2011 and2012.Income phaseout: Other 2011 2012than married filing jointlyPhaseout threshold amount N/A N/ACompleted phaseout amount N/A N/AafterIncome phaseout: Married 2011 2012filing jointlyPhaseout threshold amount N/A N/ACompleted phaseout amount N/A N/AafterNanny tax 2011 2012Domestic employee coverage $1,700 $1,800thresholdPersonal exemption amount 2011 2012Personal exemption amount $3,700 $3,800Personal exemption amount N/A N/Afor taxpayers with AGIexceeding maximum phaseoutthresholdMarried filing jointly 2011 2012Phaseout threshold amount N/A N/ACompleted phaseout amount N/A N/Aafter Page 6 of 26, see disclaimer on final page
    • Head of household 2011 2012Phaseout threshold amount N/A N/ACompleted phaseout amount N/A N/AafterSingle 2011 2012Phaseout threshold amount N/A N/ACompleted phaseout amount N/A N/AafterMarried filing separately 2011 2012Phaseout threshold amount N/A N/ACompleted phaseout amount N/A N/Aafter"Savers Credit"Elective Deferrals and IRA 2011 2012Contributions by CertainIndividualsMaximum credit amount $1,000 $1,000Applicable percentage of 2011 201250% applies to AGIJoint Return $0 - $34,000 $0 - $34,500Head of Household $0 - $25,500 $0 - $25,875Other $0 - $17,000 $0 - $17,250Applicable percentage of 2011 201220% applies to AGIJoint Return $34,001 - $36,500 $34,501 - $37,500Head of Household $25,501 - $27,375 $25,876 - $28,125Other $17,001 - $18,250 $17,251 - $18,750Applicable percentage of 2011 201210% applies to AGIJoint Return $36,501 - $56,500 $37,501 - $57,500Head of Household $27,376 - $42,375 $28,126 - $43,125Other $18,251 - $28,250 $18,751 - $28,750Applicable percentage of 0% 2011 2012applies to AGIJoint Return Over $56,500 Over $57,500Head of Household Over $42,375 Over $43,125Other Over $28,250 Over $28,750 Page 7 of 26, see disclaimer on final page
    • Standard deductions 2011 2012Married filing jointly or $11,600 $11,900surviving spouseHead of household $8,500 $8,700Single $5,800 $5,950Married filing separately $5,800 $5,950Dependent Greater of $950, or $300 + Greater of $950, or $300 + earned income earned incomeAdditional deduction for aged $1,450 $1,450or blind (single or head ofhousehold)Additional deduction for aged $1,150 $1,150or blind (all other filingstatuses)Standard mileage rates 2011 2012Use of auto for business $0.51 for first half of 2011; $0.555purposes (cents per mile) $0.555 for second halfUse of auto for medical $0.19 for first half of 2011; $0.23purposes (cents per mile) $0.235 for second halfUse of auto for moving $0.19 for first half of 2011; $0.23purposes (cents per mile) $0.235 for second half2012 Federal Income Tax Rate Schedules(Individuals, Trusts, and Estates)Unmarried taxpayersIf taxable income is: Your tax is:Not over $8,700 10% of taxable incomeOver $8,700 to $35,350 $870 + 15% of the excess over $8,700Over $35,350 to $85,650 $4,867.50 + 25% of the excess over $35,350Over $85,650 to $178,650 $17,442,50 + 28% of the excess over $85,650Over $178,650 to $388,350 $43,482.50 + 33% of the excess over $178,650Over $388,350 $112,683.50 + 35% of the excess over $388,350Married filing jointly and surviving spousesIf taxable income is: Your tax is:Not over $17,400 10% of taxable incomeOver $17,400 to $70,700 $1,740 + 15% of the excess over $17,400Over $70,700 to $142,700 $9,735 + 25% of the excess over $70,700 Page 8 of 26, see disclaimer on final page
    • Over $142,700 to $217,450 $27,735 + 28% of the excess over $142,700Over to $217,450 to $388,350 $48,665 + 33% of the excess over $217,450Over $388,350 $105,062 + 35% of the excess over $388,350Married individuals filing separatelyIf taxable income is: Your tax is:Not over $8,700 10% of taxable incomeOver $8,700 to $35,350 $870 + 15% of the excess over $8,700Over $35,350 to $71,350 $4,867.50 + 25% of the excess over $35,350Over $71,350 to $108,725 $13,867.50 + 28% of the excess over $71,350Over $108,725 to $194,175 $24,332.50+ 33% of the excess over $108,725Over $194,175 $52,531 + 35% of the excess over $194,175Heads of householdIf taxable income is: Your tax is:Not over $12,400 10% of taxable incomeOver $12,400 to $47,350 $1,240 + 15% of the excess over $12,400Over $47,350 to $122,300 $6,482.50 + 25% of the excess over $47,350Over $122,300 to $198,050 $25,220 + 28% of the excess over $122,300Over $198,050 to $388,350 $46,430 + 33% of the excess over $198,050Over $388,350 $109,229 + 35% of the excess over $388,350Trusts and estatesIf taxable income is: Your tax is:Not over $2,400 15% of taxable incomeOver $2,400 to $5,600 $360 + 25% of the excess over $2,400Over $5,600 to $8,500 $1,160+ 28% of the excess over $5,600Over $8,500 to $11,650 $1,972 + 33% of the excess over $8,500Over $11,650 $3,011.50 + 35% of the excess over $11,6502011 Federal Income Tax Rate Schedules(Individuals, Trusts, and Estates)Unmarried taxpayersIf taxable income is: Your tax is:Not over $8,500 10% of taxable incomeOver $8,500 to $34,500 $850 + 15% of the excess over $8,500Over $34,500 to $83,600 $4,750 + 25% of the excess over $34,500Over $83,600 to $174,400 $17,025 + 28% of the excess over $83,600Over $174,400 to $379,150 $42,449 + 33% of the excess over $174,400 Page 9 of 26, see disclaimer on final page
    • Over $379,150 $110,016.50 + 35% of the excess over $379,150Married filing jointly and surviving spousesIf taxable income is: Your tax is:Not over $17,000 10% of taxable incomeOver $17,000 to $69,000 $1,700 + 15% of the excess over $17,000Over $69,000 to $139,350 $9,500 + 25% of the excess over $69,000Over $139,350 to $212,300 $27,087.50 + 28% of the excess over $139,350Over $212,300 to $379,150 $47,513.50 + 33% of the excess over $212,300Over $379,150 $102,574 + 35% of the excess over $379,150Married individuals filing separatelyIf taxable income is: Your tax is:Not over $8,500 10% of taxable incomeOver $8,500 to $34,500 $850 + 15% of the excess over $8,500Over $34,500 to $69,675 $4,750 + 25% of the excess over $34,500Over $69,675 to $106,150 $13,543.75 + 28% of the excess over $69,675Over $106,150 to $189,575 $23,756.75 + 33% of the excess over $106,150Over $189,575 $51,287 + 35% of the excess over $189,575Heads of householdIf taxable income is: Your tax is:Not over $12,150 10% of taxable incomeOver $12,150 to $46,250 $1,215 + 15% of the excess over $12,150Over $46,250 to $119,400 $6,330 + 25% of the excess over $46,250Over $119,400 to $193,350 $24,617.50 + 28% of the excess over $119,400Over $193,350 to $379,150 $45,323.50 + 33% of the excess over $193,350Over $379,150 $106,637.50 + 35% of the excess over $379,150Trusts and estatesIf taxable income is: Your tax is:Not over $2,300 15% of taxable incomeOver $2,300 to $5,450 $345 + 25% of the excess over $2,300Over $5,450 to $8,300 $1,132.50 + 28% of the excess over $5,450Over $8,300 to $11,350 $1,930.50 + 33% of the excess over $8,300Over $11,350 $2,937 + 35% of the excess over $11,350 Page 10 of 26, see disclaimer on final page
    • Business PlanningAdoption Assistance Programs 2011 2012Maximum amount that can be $13,360 $12,650excluded from employeesgross incomePhaseout threshold amount $185,210 $189,710Completed phaseout amount $225,210 $229,710afterEarnings subject to FICA taxes (taxable wage base) 2011 2012Maximum annual earnings $106,800 $110,100subject to Social Security taxesSocial Security and Medicare 13.30%1 13.30%1combined tax rateOASDI portion (Social 10.40%1 10.40%1Security)Hospital Insurance portion 2.90% 2.90%(Medicare)1 The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010included a 2% reduction in the Social Security (OASDI) portion of FICA tax for 2011. TheTemporary Payroll Tax Cut Continuation Act of 2011 and the Middle Class Tax Relief and JobCreation Act of 2012 extended the 2% reduction to the end of 2012.Health insurance deduction for self-employed 2011 2012Deduction for health insurance 100% 100%premiums paid byself-employed personsQualified transportation fringe benefits 2011 2012Commuter vehicles and transit $230 $125pass monthly exclusionamountQualified parking monthly $230 $240exclusion amountQualified bicycle commuting $20 $20reimbursement fringe benefit(monthly amount) Page 11 of 26, see disclaimer on final page
    • Section 179 expensing 2011 2012Maximum amount that may be $500,000 $139,000deducted under section 179Deduction reduced by the $2,000,000 $560,000amount by which the cost of§179 property placed inservice during the yearexceeds this amountSmall business tax credit for providing health-care coverage 2011 2012Maximum credit percentage 35% 35%Partial credit 2011 2012Number of full-time equivalent 25 25employees (FTEs) fewer than:Maximum average annual $50,000 $50,000wages less than:Full credit 2011 2012Number of full-time equivalent 10 10employees (FTEs) no morethan:Maximum average annual $25,000 $25,000wages less than or equal to:Special additional first-year depreciation allowance 2011 2012"Bonus" depreciation for 100% 50%qualified property acquired andplaced in service duringspecified time periodsStandard mileage rate (per mile) 2011 2012Use of auto for business $0.51 for first half of 2011; $0.555purposes $0.555 for second half Page 12 of 26, see disclaimer on final page
    • Tax on accumulated earnings and personal holding companyincome 2011 2012Maximum tax on these items 15% 15%(prior to the 2003 Tax Act,these items were taxed at thehighest marginal personalincome tax rate)Education PlanningCoverdell education savings accounts (formerly known aseducation IRAs) 2011 2012Annual contribution limit $2,000 $2,000MAGI phaseout range for 2011 2012Coverdell education savingsaccountsSingle--phaseout threshold $95,000 $95,000amountSingle--completed phaseout $110,000 $110,000amount afterMarried filing jointly--phaseout $190,000 $190,000threshold amountMarried filing jointly--completed $220,000 $220,000phaseout threshold amountDeduction for qualified higher education expenses 2011 2012Maximum deduction $4,000 N/AMAGI maximum for full 2011 2012$4,000 deductionSingle $65,000 N/AMarried filing jointly $130,000 N/A 2011 2012Reduced deduction available $2,000 N/AMAGI range for $2,000 2011 2012deductionSingle--MAGI greater than this $65,000 N/Aamount: Page 13 of 26, see disclaimer on final page
    • Single--MAGI does not exceed $80,000 N/Athis amount:Married filing jointly--MAGI $130,000 N/Agreater than this amount:Married filing jointly--MAGI $160,000 N/Adoes not exceed this amount:Education loans--interest deduction 2011 2012Maximum deduction for $2,500 $2,500interest paid on qualifiededucation loansMAGI phaseout range 2011 2012Single--phaseout threshold $60,000 $60,000amountSingle--completed phaseout $75,000 $75,000amount afterMarried filing jointly--phaseout $120,000 $125,000threshold amountMarried filing jointly--completed $150,000 $155,000phaseout amount afterGift tax exclusion 2011 2012Annual gift tax exclusion-- $13,000 $13,000single individualAnnual gift tax exclusion-- joint $26,000 $26,000giftLump-sum gift to 529 plan-- $65,000 $65,000single individualLump-sum gift to 529 plan-- $130,000 $130,000joint giftHope1 and Lifetime Learning Credits 2011 2012Maximum Lifetime Learning $2,000 $2,000creditMaximum Hope credit $2,500 $2,5001 For 2010 through 2012, the Hope credit is renamed the American Opportunity tax credit Page 14 of 26, see disclaimer on final page
    • MAGI phaseout range for 2011 2012Lifetime Learning CreditSingle--phaseout threshold $51,000 $52,000amountSingle--completed phaseout $61,000 $62,000amount afterMarried filing jointly--phaseout $102,000 $104,000threshold amountMarried filing jointly--completed $122,000 $124,000phaseout amount afterMAGI phaseout range for 2011 2012Hope CreditSingle--phaseout threshold $80,000 $80,000amountSingle--completed phaseout $90,000 $90,000amount afterMarried filing jointly--phaseout $160,000 $160,000threshold amountMarried filing jointly--completed $180,000 $180,000phaseout amount afterKiddie tax 2011 2012Generally, children pay federal $1,900 $1,900income tax at their parentsrate on any investment incomeover ...U.S. savings bonds--interest exclusion for higher educationexpenses:Joint returns 2011 2012Phaseout threshold for joint $106,650 $109,250returnsCompleted phaseout amount $136,650 $139,250afterOther returns 2011 2012Phaseout threshold for other $71,100 $72,850returnsCompleted phaseout amount $86,100 $87,850after Page 15 of 26, see disclaimer on final page
    • Protection PlanningEligible long-term care premium deduction limits: 2011 2012Age 40 or under $340 $350Age 41-50 $640 $660Age 51-60 $1,270 $1,310Age 61-70 $3,390 $3,500Over age 70 $4,240 $4,370Per diem limit: 2011 2012Periodic payments for qualified $300 $310long-term careinsurance/certain lifeinsurance:Archer Medical Savings AccountsHigh deductible health 2011 2012plan--self-only coverageAnnual deductible--minimum $2,050 $2,100Annual deductible--maximum $3,050 $3,150Annual out-of-pocket expenses $4,100 $4,200required to be paid (other thanfor premiums) cant exceedHigh deductible health 2011 2012plan--family coverageAnnual deductible--minimum $4,100 $4,200Annual deductible--maximum $6,150 $6,300Annual out-of-pocket expenses $7,500 $7,650required to be paid (other thanfor premiums) cant exceedHealth Savings Accounts (HSAs)Annual contribution limit 2011 2012Self-only coverage $3,050 $3,100Family coverage $6,150 $6,250High deductible health 2011 2012plan--self-only coverageAnnual deductible--minimum $1,200 $1,200 Page 16 of 26, see disclaimer on final page
    • Annual out-of-pocket expenses $5,950 $6,050required to be paid (other thanfor premiums) cant exceedHigh deductible health 2011 2012plan--family coverageAnnual deductible--minimum $2,400 $2,400Annual out-of-pocket expenses $11,900 $12,100required to be paid (other thanfor premiums) cant exceed 2011 2012Annual catch up contribution $1,000 $1,000limit for individuals age 55 orolderEstate Planning 2011 2012Annual gift exclusion: $13,000 $13,000Estate tax applicable $5,000,000 + DSUEA1 $5,120,000 + DSUEA1exclusion amount:Gift tax applicable exclusionamount:Noncitizen spouse annual $136,000 $139,000gift exclusion:Generation-skipping transfer $5,000,0002 $5,120,0002(GST) tax exemption:Special use valuation limit $1,020,000 $1,040,000(qualified real property indecedents gross estate):1 Basic exclusion amount plus deceased spousal unused exclusion amount (exclusion is portablefor 2011 and 2012)2 The GST tax exemption is not portable2011 through 2012 gift and estate tax rate scheduleTaxable Estate Tentative Tax Equals Plus Of Amount Over0 - $10,000 $0 18% $0$10,000 - $20,000 $1,800 20% $10,000$20,000 - $40,000 $3,800 22% $20,000$40,000 - $60,000 $8,200 24% $40,000$60,000 - $80,000 $13,000 26% $60,000$80,000 - $100,000 $18,200 28% $80,000$100,000 - $150,000 $23,800 30% $100,000$150,000 - $250,000 $38,800 32% $150,000 Page 17 of 26, see disclaimer on final page
    • $250,000 - $500,000 $70,800 34% $250,000$500,000+ $155,800 35% $500,000Credit shelter Credit amount $1,730,800 in 2011, $1,772,800 in 2012amount $5,000,000 in2011, $5,120,000 in2012Under the sunset provision of The Tax Relief, Unemployment Insurance Reauthorization, andJob Creation Act of 2010, the gift and estate and GST tax exemptions referenced above willrevert to $1 million in 2013, and the maximum tax rate will revert to 55%.Government BenefitsSocial SecuritySocial Security 2011 2012Cost-of-living adjustment(COLA)For Social Security and 0.00% 3.60%Supplemental Security Income(SSI) beneficiariesTax rate--employee 2011 2012FICA tax -- Employee 5.65%1 5.65%1Social Security (OASDI) 4.20%1 4.20%1portion of tax )Medicare (HI) portion of tax 1.45% 1.45%Tax rate--self-employed 2011 2012Self-Employed 13.30%1 13.30%1Social Security (OASDI) 10.40%1 10.40%1portion of taxMedicare (HI) portion of tax 2.90% 2.90%1 The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010included a 2% reduction in the Social Security (OASDI) portion of FICA tax for 2011. TheTemporary Payroll Tax Cut Continuation Act of 2011 and the Middle Class Tax Relief and JobCreation Act of 2012 extended the 2% reduction to the end of 2012.Maximum taxable earnings 2011 2012Social Security (OASDI only) $106,800 $110,100Medicare (HI only) No limit No limitQuarter of coverage 2011 2012Earnings required $1,120 $1,130 Page 18 of 26, see disclaimer on final page
    • Retirement earnings 2011 2012test--exemptamounts--Under fullretirement age--Benefitsreduced by $1 for each $2earned above:Yearly figure $14,160 $14,640Monthly figure $1,180 $1,220Retirement earnings 2011 2012test--exempt amounts--Yearindividual reaches fullretirement age--Benefitsreduced by $1 for each $3earned above (applies onlyto earnings for months priorto attaining full retirementage):Yearly figure $37,680 $38,880Monthly figure $3,140 $3,240Retirement earnings 2011 2012test--exemptamounts--Beginning themonth individual attains fullretirement age No limit on earnings No limit on earningsSocial Security disability 2011 2012thresholdsSubstantial gainful activity $1,000 $1,010(SGA): for the sighted (monthlyfigure)Substantial gainful activity: for $1,640 $1,690the blind (monthly figure)Trial work period (TWP) $720 $720(monthly figure)SSI federal payment 2011 2012standardIndividual (monthly figure) $674 $698Couple (monthly figure) $1,011 $1,048SSI resource limits 2011 2012Individual $2,000 $2,000Couple $3,000 $3,000SSI student exclusion limits 2011 2012Monthly limit $1,640 $1,700Annual limit $6,600 $6,840 Page 19 of 26, see disclaimer on final page
    • Maximum Social Security 2011 2012benefitWorker retiring at full $2,366 $2,513retirement age (monthly figure)Formula for Monthly Primary 2011 2012Insurance Amount (PIA)(90% of first X of AIME + 32% X=$749 Y=$4,517 X=$767 Y=$4,624of the AIME over X andthrough Y + 15% of AIME overY)MedicareMedicare monthly premium 2011 2012amounts--Part A (hospitalinsurance) premiumIndividuals with 40 or more $0 $0quarters of Medicare-coveredemploymentIndividuals with 30 to 39 $248 $248quarters of Medicare-coveredemployment who are nototherwise eligible forpremium-free hospitalinsuranceIndividuals with less than 30 $450 $451quarters of Medicare-coveredemployment who are nototherwise eligible forpremium-free hospitalinsuranceMedicare monthly premium 2011 2012amounts--Part B (medicalinsurance) monthlypremium--For beneficiarieswho file an individualincome tax return withincome that is:Less than or equal to $85,000 $96.40 $110.50 or $115.402 $99.90$85,001 - $107,000 $161.50 $139.90$107,001 - $160,000 $230.70 $199.80$160,001 - $214,000 $299.90 $259.70Greater than $214,000 $369.10 $319.70 Page 20 of 26, see disclaimer on final page
    • Medicare monthly premium 2011 2012amounts--Part B (medicalinsurance) monthlypremium--For beneficiarieswho file a joint income taxreturn with income that is:Less than or equal to $170,000 $96.40 $110.50 or $115.402 $99.90$170,001 - $214,000 $161.50 $139.90$214,001 - $320,000 $230.70 $199.80$320,001 - $428,000 $299.90 $259.70Greater than $428,000 $369.10 $319.70Medicare monthly premium 2011 2012amounts--Part B (medicalinsurance) monthlypremium--For beneficiarieswho are married, but file aseparate tax return fromtheir spouse and lived withspouse at some time duringthe taxable year with incomethat is:Less than or equal to $85,000 $96.40 $110.50 or $115.402 $99.90$85,001 - $129,000 $299.90 $259.70Greater than $129,000 $369.10 $369.102Most beneficiaries paid the same $96.40 or $110.50 premium in 2011 as they did in 2010.However, new enrollees or beneficiaries who did not have their premium withheld paid $115.40.Original Medicare plan 2011 2012deductible and coinsuranceamounts--Part A (hospitalinsurance)Deductible per benefit period $1,132 $1,156Coinsurance per day for 61st $283 $289to 90th day of each benefitperiodCoinsurance per day for 91st $566 $578to 150th day for each lifetimereserve day (total of 60 lifetimereserve days--nonrenewable)Original Medicare plan 2011 2012deductible and coinsuranceamountsSkilled nursing facility $141.50 $144.50coinsurance per day for 21st to100th day of each benefitperiod Page 21 of 26, see disclaimer on final page
    • Original Medicare plan 2011 2012deductible and coinsuranceamounts--Part B (medicalinsurance) annual deductibleIndividual pays 20 percent of $162 $140the Medicare-approvedamount for services afterdeductible is metMedicaid 2011 2012Monthly income threshold for $2,022 $2,094income-cap states ("300percent cap limit")Monthly maintenance needs 2011 2012allowance for at-homespouseMinimum3 $1,822 $1,838.75Maximum $2,739 $2,841Spousal resource allowance 2011 2012Minimum $21,912 $22,278Maximum $109,560 $113,6403Amounts listed actually effective as of July of prior year; different amounts apply to Alaska andHawaii.Retirement PlanningEmployee/individual contribution limitsElective deferral limits 2011 2012401(k) plans, 403(b) plans, Lesser of $16,500 or 100% of Lesser of $17,000 or 100% of457(b) plans, and SAR-SEPs1 participants compensation participants compensation(Includes Roth 401(k) andRoth 403(b) contributions)SIMPLE 401(k) plans and Lesser of $11,500 or 100% of Lesser of $11,500 or 100% ofSIMPLE IRA plans1 participants compensation participants compensation1 Must aggregate employee contributions to all 401(k), 403(b), SAR-SEP, and SIMPLE plans ofall employers. 457(b) plan contributions are not aggregated. For SAR-SEPs, the percentage limitis 25% of compensation reduced by elective deferrals (effectively, a 20% maximum contribution).IRA contribution limits 2011 2012Traditional IRAs Lesser of $5,000 or 100% of Lesser of $5,000 or 100% of earned income earned incomeRoth IRAs Lesser of $5,000 or 100% of Lesser of $5,000 or 100% of earned income earned income Page 22 of 26, see disclaimer on final page
    • Additional "catch-up" limits 2011 2012(individuals age 50 or older)401(k) plans, 403(b) plans, $5,500 $5,500457(b) plans, and SAR-SEPs2SIMPLE 401(k) plans and $2,500 $2,500SIMPLE IRA plansIRAs (traditional and Roth) $1,000 $1,0002 Special catch-up limits may also apply to 403(b) and 457(b) plan participants.Employer contribution/benefit3 limitsDefined benefit plan limits 2011 2012Annual contribution limit per No predetermined limit. No predetermined limit.participant Contributions based on Contributions based on amount needed to fund amount needed to fund promised benefits promised benefitsAnnual benefit limit per Lesser of $195,000 or 100% of Lesser of $200,000 or 100% ofparticipant average compensation for average compensation for highest three consecutive highest three consecutive years yearsDefined contribution plan 2011 2012limits (qualified plans, 403(b)plans, SEP, and SIMPLEplans)Annual addition limit per Lesser of $49,000 or 100% Lesser of $50,000 or 100%participant (employer (25% for SEP) of participants (25% for SEP) of participantscontributions; employee compensation compensationpretax, after-tax, and Rothcontributions; and forfeitures)(does not apply to SIMPLE IRAplans)Maximum tax-deductible 25% of total compensation of 25% of total compensation ofemployer contribution (not employees covered under the employees covered under theapplicable to 403(b) plans) plan (20% if self employed) plan (20% if self employed) plus any employee pretax and plus any employee pretax and Roth contributions; 100% for Roth contributions; 100% for SIMPLE plans SIMPLE plans3 For self-employed individuals, compensation generally means earned income. This means that,for qualified plans, deductible contributions for a self-employed individual are limited to 20% ofnet earnings from self-employment (net profits minus self-employment tax deduction), andspecial rules apply in calculating the annual additions limit.Compensation limits/thresholdsRetirement plan 2011 2012compensation limitsMaximum compensation per $245,000 $250,000participant that can be used tocalculate tax-deductibleemployer contribution(qualified plans and SEPs) Page 23 of 26, see disclaimer on final page
    • Compensation threshold used $110,000 (When 2011 is the $115,000 (When 2012 is theto determine a look-back year) look-back year)highly-compensated employeeCompensation threshold used $1 for more-than-5% owners $1 for more-than-5% ownersto determine a key employee $160,000 for officers $150,000 $165,000 for officers $150,000in a top-heavy plan for more-than-1% owners for more-than-1% ownersCompensation threshold used $5,000 $5,000to determine a qualifyingemployee under a SIMPLEplanCompensation threshold used $550 $550to determine a qualifyingemployee under a SEP planTraditional deductible IRA 2011 2012income limits--Incomephase-out range fordetermining deductibility oftraditional IRA contributionsfor taxpayers covered by anemployer-sponsored planand filing as:Single $56,000-$66,000 $58,000-$68,000Married filing jointly $90,000-$110,000 $92,000-$112,000Married filing separately $0-$10,000 $0-$10,000Traditional deductible IRA 2011 2012income limits--Incomephase-out range fordetermining deductibility oftraditional IRA contributionsfor taxpayers not covered byan employer-sponsoredretirement plan but filing a:Joint return with a spouse who $169,000-$179,000 $173,000-$183,000is covered by anemployer-sponsoredretirement planRoth IRA compensation 2011 2012limits--Income phase-outrange for determining abilityto fund Roth IRA fortaxpayers filing as:Single $107,000-$122,000 $110,000-$125,000Married filing jointly $169,000-$179,000 $173,000-$183,000Married filing separately $0-$10,000 $0-$10,000 Page 24 of 26, see disclaimer on final page
    • Investment PlanningTax on long-term capital gains 2011 2012Taxpayers in tax rate brackets 15% 15%greater than 15%Taxpayers in tax rate brackets 0% 0%15% or lessTax on dividendsMaximum tax rate on 2011 2012dividends received by anindividual shareholder fromdomestic and qualifiedforeign corporationsTaxpayers in tax rate brackets 15% 15%greater than 15%Taxpayers in tax rate brackets 0% 0%15% or less Page 25 of 26, see disclaimer on final page
    • Disclosure Information -- Important -- Please ReviewThe information contained in this material is being provided for general education purposes and with theunderstanding that it is not intended to be used or interpreted as specific legal, tax or investment advice. Itdoes not address or account for your individual investor circumstances. Investment decisions should alwaysbe made based on your specific financial needs and objectives, goals, time horizon and risk tolerance.The information contained in this communication, including attachments, may be provided to support themarketing of a particular product or service. You cannot rely on this to avoid tax penalties that may beimposed under the Internal Revenue Code. Consult your tax advisor or attorney regarding tax issues Ameriprise Financialspecific to your circumstances. Larry W. Yelverton, CRPC® Financial AdvisorNeither Ameriprise Financial Services, Inc. nor any of its employees or representatives are authorized to 738 N. Ashley Ridge Loopgive legal or tax advice. You are encouraged to seek the guidance of your own personal legal or taxcounsel. Ameriprise Financial Services, Inc. Member FINRA and SIPC. Shreveport, LA 71106 larry.2.yelverton@ampf.comThe information in this document is provided by a third party and has been obtained from sources believed office: 318-861-3521to be reliable, but accuracy and completeness cannot be guaranteed by Ameriprise Financial Services, Inc.While the publisher has been diligent in attempting to provide accurate information, the accuracy of theinformation cannot be guaranteed. Laws and regulations change frequently, and are subject to differing legalinterpretations. Accordingly, neither the publisher nor any of its licensees or their distributees shall be liablefor any loss or damage caused, or alleged to have been caused, by the use or reliance upon this service. Page 26 of 26 May 09, 2012 Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2012