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Retirement Plan and IRA Limits
| Description |
Code Sec. |
2008 |
2009 |
2010 |
2011 |
| Maximum benefit for defined benefit plan |
415(b)(1)(A) |
$185,000 |
$195,000 |
$195,000 |
$195,000 |
| Maximum contribution for defined contribution plan |
415(c)(1)(A) |
$46,000 |
$49,000 |
$49,000 |
$49,000 |
| Maximum 401(k) deferral |
402(g)(1) |
$15,000 |
$16,500 |
$16,500 |
$16,500 |
| Elective deferral catch-up contributions for age 50
or older |
414(v)(2)(B)(i) |
$5,000 |
$5,500 |
$5,500 |
$5,500 |
| Highly Compensated Employee (HCE) |
414(q)(1)(B) |
$105,000 |
$110,000 |
$110,000 |
$110,000 |
| Annual compensation limit |
401(a)(17) and 404(l) |
$230,000 |
$245,000 |
$245,000 |
$245,000 |
| Minimum compensation for SEPs |
408(k)(2)(C) |
$500 |
$550 |
$550 |
$550 |
| SIMPLE plan deferral limit |
408(p)(2)(E) |
$10,500 |
$11,500 |
$11,500 |
$11,500 |
| Catch-up contributions for age 50 or older for SIMPLE
plans |
414(v)(2)(B)(ii) |
$2,500 |
$2,500 |
$2,500 |
$2,500 |
| Social Security Taxable Wage Base |
|
$102,000 |
$106,800 |
$106,800 |
$106,800 |
Source: Tax.cchgroup.com
1 The annual compensation limitation under
Code Sec. 401(a)(17) for eligible participants in certain
governmental plans that, under the plan in effect on July 1,
1993, allowed cost-of-living adjustments under the plan
under Code Sec. 401(a)(17) to be taken into account.
Quick Reference Guide – Important Figures for Income Taxes
|
2007 |
2008 |
2009 |
2010 |
2011 |
| Personal Exemption |
$3,400 |
$3,500 |
$3,650 |
$3,650 |
$3,650 |
| Standard mileage rates |
| car used in business |
48.5¢ |
50.5¢ Jan-Jun, 58.5¢ Jul-Dec |
55¢ |
50¢ |
51¢ |
| charitable |
14¢ |
14¢ |
14¢ |
14¢ |
14¢ |
| moving expense and medical |
20¢ |
19¢ Jan-Jun,
27¢ Jul-Dec |
24¢ |
16.5¢ |
19¢ |
| Phaseout of personal exemptions starts |
| couple (AGI) |
$234,600 |
$239,950 |
$250,200 |
$0 |
$0 |
| single (AGI) |
$156,400 |
$159,950 |
$166,800 |
$0 |
$0 |
| Phaseout of itemized deductions starts |
$156,400 |
$159,950 |
$166,800 |
$0 |
$0 |
| Social Security earnings limit |
| Under full retirement age |
$12,960 |
$13,560 |
$14,160 |
$14,160 |
$14,160 |
| Over full retirement age |
no limit |
no limit |
no limit |
no limit |
no limit |
| Wage base, social security tax |
$97,500 |
$102,000 |
$106,800 |
$106,800 |
$106,800 |
| Taxable wage base, Medicare |
no limit |
no limit |
no limit |
no limit |
no limit |
| Deferral limits – 401(k)s, SEPs |
$15,500 |
$15,500 |
$16,500 |
$16,500 |
$16,500 |
| IRAs |
$4,000 |
$5,000 |
$5,000 |
$5,000 |
$5,000 |
| Automatic exemption from estate tax |
$2,000,000 |
$2,000,000 |
$3,500,000 |
no limit |
$5,000,000 |
| Standard Deductions |
| Single |
$5,350 |
$5,450 |
$5,700 |
$5,700 |
$5,700 |
| Married Filing Joint Return |
$10,700 |
$10,900 |
$11,400 |
$11,400 |
$11,400 |
| Surviving Spouse |
$10,700 |
$10,900 |
$11,400 |
$11,400 |
$11,400 |
| Head of Household |
$7,850 |
$8,000 |
$8,350 |
$8,400 |
$8,400 |
| Unmarried (not SS or HH) |
$5,350 |
$5,450 |
$5,700 |
$5,700 |
$5,700 |
| Married Filing Separate Return |
$5,350 |
$5,450 |
$5,700 |
$5,700 |
$5,700 |
| Dependent Std Deduction (min) |
$850 |
$900 |
$950 |
$950 |
$950 |
| Business — Section 179 |
$125,000 |
$250,000 |
$250,000 |
$500,000 |
$500,000 |
Recommended Document Retention for Businesses
Businesses (including LLCs and LLPs) should retain the
listed records for the time periods indicated.
Type of Record |
Retention Period |
Copies of tax returns as filed |
7 years after liquidation of entity |
Tax and legal correspondence |
7 years after liquidation of entity |
Audit reports |
7 years after liquidation of entity |
General ledger and journals |
7 years after liquidation of entity |
Financial statements |
7 years after liquidation of entity |
Contracts and leases |
7 years after liquidation of entity |
Real estate records |
7 years after liquidation of entity |
Corporate stock records and minutes |
7 years after liquidation of entity |
Bank statements and deposit slips |
6 years1 |
Sales records and journals |
6 years1 |
Other records relating to revenue |
6 years1 |
Employee expense reports and records relating to travel and
entertainment expenses |
6 years1 |
Canceled checks |
3 years1 |
Paid vendor invoices |
3 years1 |
Employee payroll expense records |
3 years1 |
Inventory records |
3 years2 |
Depreciation schedules |
At least tax life of asset plus 3 years |
Other capital asset records |
At least tax life of asset plus 3 years |
Other records relating to expenses |
3 years1 |
Partnership agreement and amendments |
permanently |
Operating agreement and amendments (LLC) |
permanently |
Source: PPC Practice Aid O501
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