IRS News for the Tax Year 2002.
Social Security beneficiaries under full retirement age can earn $11,280 before their benefits are reduced. For every $2 a person under age 65 earns over $11,280, $1 is withheld from benefits.
In the year employees reach full retirement age, $1 in benefits is deducted for each $3 they earn above $30,000 until the month the employees reach full retirement age.
Benefits are not reduced when employees are full retirement age or older, no matter how much they earn.
Retirement Contributions Increased for 2003
Most retirement plans have an increase in the amount you may contribute.
Well, if your 401(k) went down 50%, you may now add more to it!!
To deduct a loss on a bad investment (stock) can be done only when the stock is worthless, or you sell the stock. If your stock goes from $85 to 10 cents, you can NOT write off "partial worthlessness", you must sell the stock to obtain the loss.
The IRS "wash-sale" rule disallows losses on securities if you purchase the same ones back within 30 days of selling them.
Generally if your capital gain losses exceed your gains you will be able to carry the loss over to future years, using $3,000 per year.