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 roll the IRA over or treat it as their own also use the single life table, but they can look up their age each year.
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:
Tax on assets transferred to non-spouse heirs at death:
| Year | Exempt from Tax | GST Tax Rate |
|---|---|---|
| 2015 | $5,430,000 per person (no portability) | 40% |
You may give the following amount to an individual, free of gift tax:
| Year | Annual Exclusion |
|---|---|
| 2015 | $14,000 |
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 |
|---|---|---|
| 2015 | $5,430,000 per person with portability | Top rate of 40% |
Marginal Tax Rate | Single | Married Filing Jointly or Qualifying Widow(er) | Married Filing Separately |
39.6% | $413,201 and more | $464,851 and more | $232,426 and more |
35% | $411,501 - $413,200 | $411,501 - $464,850 | $205,751 - $232,425 |
Here's what can be contributed to a SEP IRA:
| Year | Status | Maximum Contribution |
|---|---|---|
| 2015 | W-2 Income | Up to 25% of compensation, but no more than $53,000. |
| 2015 | Self Employed | Generally up to 20%, but no more than $53,000. |
| Year | Under age 50 | Age 50+ |
|---|---|---|
| 2015 | $5,500 | $6,500 |
