2009 Contributions & Allowances

2009 Retirement plan contribution limits

Traditional or Roth IRA $ 5,000

(if 50 or older on December 31) $ 6,000

SIMPLE-IRA $ 11,500

(if 50 or older on December 31) $ 14,000

401(k), 403(b) and 457 plans $ 16,500

(if 50 or older on December 31) $ 22,000

SEP-IRA

25% of eligible compensation up to $ 49,000

Deductible IRA contribution amounts may be reduced or eliminated if you (or your spouse) are covered by a “qualified retirement plan”. In 2009 there are income limitations for making Roth IRA contributions even if you are not covered by a qualified plan.

Traditional-to-Roth IRA conversions: In 2009 there are income limitations which must be taken into account when determining who may make conversions. In 2010, however, there will be no income limitations and the federal tax on converted amounts may be paid in over two years.
2009 Mileage rates

Business mileage 55 cents per mile

Medical or Moving mileage 24 cents per mile

Charitable mileage 14 cents per mile

2009 Social Security tax rates and wage limits

FICA portion of tax is 6.2% (.062) on the first $ 106,800 earned

(maximum tax = $ 6,621.60)

Medicare portion of tax is 1.45% (.0145) with no limit

(all wages are taxed)

Federal Minimum Wage

Increases to $ 7.25 per hour (from $ 6.55) on July 24, 2009.

North Carolina’s minimum wage is the same as federal. Some states have their own rate (check with the state Department of Labor).

Some types of pay (i.e. tipped employees) are exempt or have special rules.