Cost of living adjustments were announced last week and plan limits for 2009 are now available.
401k and 403b plans:
Employee deferrals will be $16,500, up from $15,500 in 2008.
The catch-up limit for 2009 has increased from $5,000 to $5,500. So, if you are 50 or older in 2009, then you can defer up to $22,000, not including the employer match.
The highly compensated employee limit increased from $105,000 to $110,000. This limit may affect those whose employer's plan is not a safe-harbor plan.
TAXES: The social security taxable wage base for 2009 is $106,800. You can expect to pay 6.2% of your income up to this limit. And another 1.45% on top of that for Medicare and there is no income limit on that.
If you are self-employed, then you have to pay the employer portion ,too.
SOCIAL SECURITY: The cost of living percentage increases for this have been announced, too. A 5.8% increase in social security benefits and no change in Medicare premium schedules previously put in place with stepped-up modifications for higher income retirees. Go to: http://www.ssa.gov/ for details.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.