Mileage Rates
2010: Standard Mileage Rate: $0.50 / mile Medical Mileage Rate: $0.16/mile Charitable Mileage Rate: $0.14/mile
2009: Standard Mileage Rate: $0.55 / mile Medical Mileage Rate: $0.24/mile Charitable Mileage Rate: $0.14/mile
Retirement Plan Contribution Limits
| Plan Type | 2008 | 2009 | 2010 |
| IRA (Age 49 & Below) | $5,000 | $5,000 | $5,000 |
| Catch-up for IRA (Over 50) | $1,000 | $1,000 | $1,000 |
| Defined Contribution Plans | $46,000 | $49,000 | $49,000 |
| 401(k), 403(b), & SAR-SEP | $15,500 | $16,500 | $16,500 |
| Catch-up for401(k), 403(b), & SAR-SEP | $5,000 | $5,500 | $5,500 |
| Simple Plan | $10,500 | $11,500 | $11,500 |
| Catch-up for Simple Plan | $2,500 | $2,500 | $2,500 |
| Max Compensation for Determining Contributions | $230,000 | $245,000 | $245,000 |
| Compensation limit for SEP participant exclusion | $500 | $550 | $550 |
| Social Security Taxable Wage Base | $102,000 | $106,800 | $106,800 |
2009 Personal Income Tax Rates
| Marginal Tax Rate |
Single |
Married Filing Jointly or Qualified Widow(er) |
Married Filing Separately |
Head of Household |
|---|---|---|---|---|
| 10% | $0 – $8,350 | $0 – $16,700 | $0 – $8,350 | $0 – $11,950 |
| 15% | $8,351– $33,950 | $16,701 – $67,900 | $8,351 – $33,950 | $11,951 – $45,500 |
| 25% | $33,951 – $82,250 | $67,901 – $137,050 | $33,951 – $68,525 | $45,501 – $117,450 |
| 28% | $82,251 – $171,550 | $137,051 – $208,850 | $68,525 – $104,425 | $117,451 – $190,200 |
| 33% | $171,551 – $372,950 | $208,851 – $372,950 | $104,426 – $186,475 | $190,201 - $372,950 |
| 35% | $372,951+ | $372,951+ | $186,476+ | $372,951+ |
2009 Corporate Tax Rates
|
Marginal Tax Rate |
Taxable Income |
| 15% | $0 - $50,000 |
| 25% | $50,001 - $75,000 |
| 34% | $75,001 - $100,000 |
| 39% | $100,001 - $335,000 |
| 34% | $335,001 - $10,000,000 |
| 35% | $10,000,001 - $15,000,000 |
| 38% | $15,000,001 - $18,333,333 |
| 35% | $18,333,334+ |
Limitations 2009
Estate Tax Exemption Amount $3.5 million
Gift Tax Exclusion (Per Person) $13,000
Section 179 Limit $250,000
Section 179 Phase-out (Property Placed in Service) $800,000
SUV Section 179 Limitation $25,000
HSA Contribution Limit (Individual) $3,000
HSA Contribution Limit (Family) $5,950
Max Exclusion of Unemployment Benefits $2,400
Max Sales Tax Deduction on New Vehicles $2,970
Required to File If Earned Income Exceeds $5,700
OR Unearned Income Exceeds $950
Retirement Plan Information 2009
| SEP IRA
(SELF-EMPLOYED) |
SEP IRA (EMPLOYEE) |
SIMPLE IRA | DEFINED BENEFIT | DEFINED CONTRIBUTION (PROFIT SHARING) |
COMBINATION DEFINED-BENEFIT, DEFINED CONTRIBUTION | 401(K) | 403(B) | |
| Eligibility to Participate | Any self employed individual. | Employee at least 21 that worked for employer in 3 of the last 5 years and received at least $550 in compensation | Employers with fewer than 101 employees. Must be offered to employees earning at least $5K in any prior two years | Corps. can set up qualified pension plans as either defined benefit, contribution, or both. Employees must be 21 with one year of service (1K hours). Sole proprietors and partners can set up plans for themselves and employees. | Employees at least 21 with 1yr service (1K hours) | Employees of tax exempt organizations including self-employed clergy | ||
| Maximum Contributors Allowed | 20% of SE Income after SE tax deduction up to max of $49K | 25% of wages up to a max of $49K (plans prior to 1997 follow 401k rules) | $11,500 ($14,000 if 50 or older) Employer can match up to 3% or contribute 2% of wages to all employees (even non- participating) | Actuarially determined. Limited to 100% of average compensation for three consecutive years of highest compensation (limited to $245K) but not to exceed $195K | Up to lesser of 100% of compensation or $49K. Compensation limit $245K. Employer deduction limited to 25% of aggregate compensation for all participants (20% of net SE income after SE tax deduction) | Greater of 25% of wages or amount necessary to meet minimum funding standard of defined-benefit plan | $16,500 ($22,000 for 50 or older). Employer to 25% of combined wages. Combined employer/employee contribution limited to 100% of wages up to $49K. | $16,500 ($22,000 for 50 or older). Special formula applies for employer contributions based on years of service. Combined employer/employee contribution limited to 100% of wages up to $49K. |
| Penalties for Early Withdrawal (Before 59 1/2) | 10% of Distribution (Exceptions Available) | 10% of Distribution or 25% if participated less than 2 years | 10% of Distribution (Exceptions Available) | |||||
| Age Withdrawals Must begin | 70 1/2 but contributions can still be made if there is earned income. | 70 1/2 for self-employed and 5% owners; 70 1/2 or year of retirement (whichever is later) for all other employees | ||||||
| Date to Start Plan and Make Contributions | Return Date (including extensions) | Establish by 10/1/09 for new plans. Make contribution by return due date (including extensions) | Dec. 31 to establish plan. Return due date (including extensions for contributions). 8 1/2 months after year-end for defined benefit contributions. | Dec. 31 to establish plan. For employer contributions, return due date (including extensions) | ||||
| Employer Contribution Required? | No | Yes | No | Maybe | Generally no | |||
| Borrowing Permitted? | No | Yes if plan permits. Must pay back in 5 years unless used to buy principal residence. | ||||||
| Lump Sum Counts for Averaging? | No | Yes | No | |||||
| Rollover Allowed? | Yes | |||||||
| Penalty for Excess Contributions? | 6% excise tax for both SE and employees if excess is not withdrawn by due date. Employers are subject to 10% excise tax on excess contributions (unless exceptions apply). | 10% penalty | For Employee Deferrals, no penalty if
withdrawn before 4/15/10. Otherwise taxed twice (in year of
deferral and at distribution). For Employers, 10% penalty on excess unless distributed (with earnings) to highly compensated employee within 2 1/2 months of close of plan year. Failure to distribute causes plan to fail to be a qualified retirement plan until corrected. |
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