Tax changes for 2009:
· If an individual is 70 ½ years or older, he can for go payouts from plans and IRAs and avoid penalties.
· 401K contributions have increased by $ 1000 to a total of $ 16,500. Individuals born before 1960 can put in an additional $ 5,500 for a total of $ 22,000.
· The yearly pay in limits for Roth IRAs and IRAs remain the same, $ 5000 with an additional $ 1,000 for anyone who was born in 1959 or before.
· Personal casualty losses taken on Schedule A are subject to an increases minimum floor of $ 500, up from $ 100 from 2008 and prior years
· Income tax brackets for 2009 are significantly broader, principally due to higher inflation. To all of our benefit, there have not been any changes in tax rates within each bracket.
· The annual gift tax exclusion has increased $ 1000 to $ 13000. This means that a husband and wife may gift a combined $ 26000 before a Gift Tax Return has to be prepared.
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