Some Financial Thoughts As You Enter 2012 by huangyuarong

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									                             Some Financial Thoughts As You Enter 2012

Social Security:
   1. For the first time since 2009, the Social Security wage base rose $3,300 to $110,100 for 2012
   2. For beneficiaries who are working, there is a loss of benefits as follows:
                a. Between ages 62-66: lose $1 in benefits for every $2 earned above $14, 640
                b. Turning 66 in 2012, no loss of benefits up to $38,880
                c. No earnings cap after reaching full retirement age.
2012 Taxes Affect You??
    The $5 million estate exemption expires 12/31/12 and reverts to $1 million if Congress does not act
    Top Federal estate tax rate is 35%
    Annual gift tax exclusion remains at $13,000 ($26,000 for married couples)

529 Ratings:
     Morningstar released its annual ratings for 529 college-savings plans. To review, go to
http://global.morningstar.com/529PlanRatingsChart2011

Long-term Care:
   Nearly half of respondents in a recent survey incorrectly thought that health insurance,
   Medicare or disability insurance will cover long term care costs.

Required Minimum Distribution (RMD):
   Taxpayers 70-1/2 and older must take an IRA required minimum distributions. Check with your IRA
   custodian for calculations. Remember, you do not need to take an RMD from a Roth IRA (you
   already paid the taxes) unless it’s an inherited Roth.

Volunteer Work:
  You cannot deduct the value of your time but you can take a write-off for office supplies, postage and
  transportation (14 cents a mile – if drive your own car) costs to the place where you volunteer.

Charitable Giving:
  Donating cash is always welcome here at CC. However, consider donating those appreciated securities
  in your taxable accounts. In addition to the deduction for the gift, you avoid paying the capital-gains
  tax and CC gets the full value of your gift, not the amount after your capital gains reduction. You can
  then repurchase the shares so your portfolio would remain nearly neutral.

  Should one require a steady income, charitable deductions, and potentially lower tax rates, a charitable
  remainder trust or charitable gift annuity might be something to consider. As with all financial
  decisions, check with your tax attorney/financial advisor before taking action.

								
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