Series 6 License, California

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  1. What are the standard limits for "Qualified Plans" (401K's and IRA's, Keogh, 403b, 457 Plan)
    • Elective Deferral $17,500
    • Catch Up $5,500 ($23,000) Must be 50+
    • Max >of$51,000 or 100%
    • Max Considered Compensation $255,000
  2. What is different about the SEP IRA?
    • -There is an employer contribution limit of 25% or $51,000.
    • -Funded COMPLETELY BY EMPLOYER
    • -Age 21 and worked for last 3 of 5 years
    • -employee must have earned at least $550
    • -Catch up contributions to the IRA that holds the SEP but the holder must be 50 or older, limit is $6,500
  3. SIMPLE IRA
    • For small employers >100
    • -Employee must have earned at lease $5000
    • -employee limit $12,000
    • -catch up $2,500 ($14,500)
  4. Individual IRA
    • Limit of $5,000
    • Catch up $1,000
  5. What are the special restrictions on the Traditional IRA if you ARE covered by a plan at work.
    • MAGI
    • Single or Head -
    • $59< =full deduction, $59 to $69 = partial, $69+ no TAX deduction.

    • Married - $95, $115,
    • Married filing separately >$10 if above $10, no deduction.
  6. Traditional IRA - What are the restrictions if you aren't covered at work?
    • Single -No restrictions
    • Jointly with uncovered spouse - no restrictions
    • Spouse covered -  $178, $188
    • Married filing separately with covered spouse - $10 and $10
  7. ROTH IRA
    • Limit of $5,500
    • Catch up $1,000
    • Single, Single Head, $112,$127
  8. Coverdel ESA
    Contribution limit of $2,000 / beneficiary under 18
  9. 529 plan
    Max of 5 times the gift tax exclusion which is $14,000 for 2013. But you can't give them anything else for 5 years.

    Life time typically $300,000
  10. What is the American Taxpayer Relief Act? (ATRA)
    • -$5,250,000 exemption
    • -40% tax rate
    • -$10,500,000 to heirs tax free
    • Even if the estate falls below the 5 mil benchmark, the Generation Skipping Transfer form 706 must be filed.
  11. Form 1041
    • Estate Tax form
    • Must be filed on an estate larger than $600
    • Form is for tax emposed on income earned by the estate.
  12. Form 706
    form that computes the tax when the estate is transferred.
  13. Gift Tax Exclusion
    $14,000
  14. Lifetime Gift Tax Exemption
    • $5,250,000
    • 40% tax rate
  15. Generation Skipping Transfer Tax
    two generations or unrelated person 37.5 years younger

    • -$5,250,000
    • -40%
  16. Kiddy Tax Exclusion
    • -Under 19 or 24 if student
    • -No tax for first $1,000
    • $1,000 to $2,000 taxed at child rate
    • -above $2,000 taxed at parent's rate
  17. What are the lowest and highest tax brackets?
    • -10%
    • -MFJ above $450,000 = 39.6%
  18. What are the Long Term Capital Gains Rates?
    • -10% to 15% bracket=0%
    • -25% to 35% = 15%
    • -39.6% = 20%

    Non qualified dividends and SHORT TERM CAPITAL GAINS are taxed as ordinary income
  19. What is Qualified Dividend Income
    • -paid by U.S. Corp or qualified foreign Corp
    • -Must meet the holding period. (>60 days on either side of the ex-dividend date)
  20. Payroll tax rates
    • 6.2% for employed
    • 12.4% for self employed
  21. Income subject to Social Security
    $113,700
  22. Child Tax Credit
    $1,000 per child

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Author:
GretchenRicker
ID:
213686
Filename:
Series 6 License, California
Updated:
2013-04-15 18:28:26
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Description:
My personal study cards for the Series 6 California License
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