CLIENT REPORT
2010 LIMITS

GIFT TAX

An individual can give up to $13,000.00 to any number of persons without paying any gift tax on the transfer.

STANDARD MILEAGE RATES

                                             Cents per mile

Business                                          50
Charitable                                         14
Medical                                            16.5
Moving                                             16.5

 

SOCIAL SECURITY BENEFITS

           Earnings Test

Under Full Retirement Age

Between the age of 62 but prior to Calendar Year the retiree becomes fully retired. (One dollar in benefits will be withheld for every two dollars in earnings above the limit)

               Annual  $14,160
Monthly Average   $  1,180

Year Individual Reaches Full
Retirement Age

Applies only to earnings for months prior to attaining full retirement age. One dollar will be withheld for ever three dollars in earnings above the limit.

              Annual  $37,680
Monthly Average  $  3,140

Full Retirement Age

66 for retirees born 1943-1954 – NO LIMIT

OTHER LIMITS

Section 179 (Depreciation)

                 $134,000

HOUSEHOLD WORKERS

Threshold amount for payment of FICA taxes $1,700.00

RETIREMENT LIMITS

Some are subject to AGI or Taxable Income limitations

Regular IRA/Roth - $5,000.00

Age 50+ additional - $1,000.00

401(k) - $16,500.00

Age 50+ additional - $5,500.00

403(b) Tax Sheltered

           Annuity - $16,500.00

Age 50+ additional - $5,500.00

SEP % of Income - 25% up to  $49,000.00

Simple - $11,500.00

Age 50+ additional - $2,500.00

Section 457 Deferred Comp. -    $16,500.00

Profit Sharing - $49,000

Maximum dollar limit per plan participant

MINIMUM WAGE

            FEDERAL

                7/24/09 - $7.25 an hour

            COLORADO effective 1/1/2010

               $7.24 an hour

               $4.22 an hour for tipped employees

Email address

linda@lward.biz

(All limits subject to change)

January 5, 2010