2008 Tax Information

Mileage rates:
Business: 50.5 cents per mile
Charity: 14 cents per mile
Medical/Moving: 19 cents per mile

Personal exemption: $3,500

Maximum Roth contribution income limitation:
Married filing joint: $159,000
Single/Head of Household: $101,000

Annual contribution to most defined-contribution plans:
$46,000

IRA contribution amount: $5,000 and $1,000 IRA "catch up" contributions for taxpayers over the age of 50. Individual must meet the earned-income requirements to contribute.

Traditional IRA (deductible and nondeductible) contributions:
Individual must have earned income (compensation) and be
under the age of 70½ at year-end.

   Deductible:
     Not covered by an employer retirement plan: full deduction.

     Covered by employer retirement plan (individual or spouse):

        Individual covered:
           Married filing joint: $85,000-$105,000 phase-out amounts;
           Single:                   $53,000-$63,000 phase-out amounts.

Individual not covered, but spouse is covered:
Married filing joint: $159,000-$169,000.

Nondeductible: No income limits.

Subject to earned-income requirements; must be under the age of 70½ by year-end; subject to IRA contribution limits; upon withdrawal, part of the distribution is taxable (earnings) and part is nontaxable (return of nondeductible contributions). Distributions must be allocated between taxable and nontaxable. The individual must keep track of the changing "basis" (nondeductible portion of the contribution) in the IRA.

Social Security Information: Under full retirement age, must earn $13,560/year (for every $2 above this limit, $1 in benefits will be withheld).

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