Monday, November 30, 2009

Additional Tax Caps for 2010

The IRS has released the final numbers for 2010 on many tax items. Here is a listing of many relevant caps for 2010:

Nanny Tax: If the amount you pay any given worker for domestic help in your home is less than $1,700, you will not owe any Social Security taxes.

Gifting Limit: $13,000 per person per year (same as 2009).

SEP/401(k) contributions: the maximum remains at $49,000. The annual salary limitations remain at $245,000 (for which 20% of this amount is $49,000, or the cap on the maximum annual contribution).

SIMPLE plan contributions: $11,500

Elective Deferrals (for a retirement plan) is $16,500 (the same as in 2009).

Catch-up contributions: For individuals aged 50 or more in 2010, you can make an additional contribution of $5,500 for 401(k) based retirement plans. For IRA plans, the amount is $1,000 in excess of the normal contribution limits.

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