Each year, the maximum limits for various government programs and tax laws change due to inflation adjustments (i.e., indexing) and/or existing legislation. Below is a description of key numbers that are in effect for 2003, courtesy of the College For Financial Planning:

·    Maximum contribution to 401(k), 403(b), and 457 plans - $12,000

·    Additional catch-up contribution to tax-deferred plans for taxpayers age 50 and over - $2,000

·    Maximum contribution to a defined contribution pension plan - $40,000

·    Maximum contribution to a SIMPLE retirement savings plan - $8,000

·    Maximum contribution to a traditional or Roth IRA - $3,000

·    Additional catch-up contribution for IRAs for taxpayers age 50 and over - $500

·    IRA deduction phaseout range for active participants in a qualified employer retirement plan (adjusted gross income)
    Single                $40-50,000
    Married - joint return        $60-70,000
    Married - filing separately    $0-10,000

·    Roth IRA phaseout range (adjusted gross income)
    Single                $95-110,000
    Married - joint return        $150-160,000

·    Medicare
    Monthly Premium: Part A/Part B    $316/$58.70

·    Social Security
    SS taxable wage base        $87,000
    SS tax rate - employee    7.65%
    SS tax rate - self-employed    15.30%
    Earnings limitation:
        Below normal retirement age ($1 for $2 reduction)    $11,520
        Persons reaching full retirement age in 2003 (applies only to earnings for months prior to attaining FRA)            $30,720
    Quarter of coverage            $890
    Maximum benefit to worker retiring at age 65    $1,741
    Estimated average monthly benefit            $895

·    EE bonds for education - phaseout exclusion:
    Adjusted gross income - filing single:
        Minimum        $58,500
        Maximum        $73,500
    Adjusted gross income - filing joint:
        Minimum        $87,750
        Maximum        $117,750

·    Personal exemption - $3,050

·    Annual gift tax exclusion - $11,000

·    Estate tax exclusion - $1 million