2009 ushers in a new wave of financial limits that can impact your bottom line. Every year we get a new set of limits based on the guidelines presented by Congress and the IRS. The important point of understanding these limits is to have the ability to take full advantage of them. If you only contribute 1% of your pay to your 401k, then you probably will not need to know that the 2009 401k limit for an employee under age 50 is $16,500. Remember it is how you use this information that’s important!
Useful 2009 Limits:
401k, 403b and 457 contributions limits – $16,500
Catch up provision for those 50 and older – $5500
IRAs and Roth limits – $5000 (under 50) – $6000 (age 50+)
SIMPLE IRA and SIMPLE 401k – $11,500
Catch up provision for those 50 and over – $2500
Social Security Maximum Earnings – $106,800
Annual Gift Exclusion – $13,000 Federal (TN has 2 donor classes that impact the exclusion….$13,000 for class A donees and $3000 for class B).
Standard Deduction – Single $5700, Married Filing Joint $11,400
Personal Exemption – $3650
Federal Estate Tax Exclusion – $3,500,000
The above list includes most of the commonly used limits that impact the majority of society, but this is certainly not an exhaustive list. Use these limits to your financial gain. Maxing out your retirement options reduces your tax burden, which puts money back into your pocket.
Know you limits and use them wisely!