NEW TAX LAWS FOR 2009

• No required minimum distributions (RMD) from IRA accounts for 2009 for those over 70 1/2. Same applies for heirs. This will start up again in 2010.
  
• 401k contribution limits will be raised to $16,500. If you were born before 1960 – another $5,500.
   
• 403(b) and 457 plans – same as above.
   
• SIMPLE plan limits - $11,500. Over 50 – another $2,500
   
• IRA and Roth contribution limits are the same. $5,000 Over 50, another $1,000
   
• Casualty losses on non-business claims have a $500 floor to be deductible. It was $100. Must be over 10% AGI as well.
   
• Personal exemptions are $3,650 for 2009 with phase outs for higher income levels.
   
• Standard Deduction for joint filers is $11,400. If one spouse is 65 or older, $12,500, if both are 65 or older it is $13,600. Single filers have a standard deduction of $5,700. Age 65 and older $7,100.
   
• Estate tax exemption goes to $3.5 million this year.
   
• Annual gift tax exclusion goes to $13,000.
   
• Medicare B premium states at $96.40/mo. Higher income earners pay higher premiums. Over $85,000 for singles and over $170,000 for joint filers.
   
• Social Security wage base rises to $106,800 for 2009. Up from $102,000.
   
• For those on early retirement (age 62 to 66 in 2009), the earnings limits are now $14,160 before Social Security benefits are reduced. If you turn 66 in 2009, the limit is $37,680 before reaching age 66.
   
• Health Savings account limits go to $5.950 for family coverage, and $3,000 for single coverage. Add another $1,000 if born before 1955.

  (Please contact your tax advisor for specific benefits in your case.)