Important Tax Information
Social Security Wage Base
| 2012 | $110,100 |
|---|---|
| 2011 | $106,800 |
| 2010 | $106,800 |
Maximum Retirement contributions
| 401(K) | 2012 = $17,000, add'l $5,500 if over age 50 2011 = $16,500, add'l $5,500 if over age 50 2010 = $16,500, add'l $5,500 if over age 50 |
|---|---|
| Simple | 2012 = $11,500, add'l $2,500 if over age 50 2011 = $11,500, add'l $2,500 if over age 50 2010 = $11,500, add'l $2,500 if over age 50 |
| IRA | 2012 = $5,000, add'l $1,000 if over age 50 2011 = $5,000, add'l $1,000 if over age 50 2010 = $5,000, add'l $1,000 if over age 50 |
| Roth IRA | 2012 = $5,000, add'l $1,000 if over age 50 2011 = $5,000, add'l $1,000 if over age 50 2010 = $5,000, add'l $1,000 if over age 50 |
| SEP | 2012 = lesser of $50,000 or 25% of employee's compensation 2011 = lesser of $49,000 or 25% of employee's compensation 2010 = lesser of $49,000 or 25% of employee's compensation |
Defined Contribution Plan
Defined contribution plan's annual contributions and other additions (excluding earnings) to the account of a participant cannot exceed:
| 2012 | lesser of $50,000 or 25% of employee's compensation |
|---|---|
| 2011 | lesser of $49,000 or 25% of employee's compensation |
| 2010 | lesser of $49,000 or 25% of employee's compensation |
Defined Benefit Plan
The annual benefit for a participant under a defined benefit plan cannot exceed:
| 2012 | $200,000 |
|---|---|
| 2011 | $195,000 |
| 2010 | $195,000 |
Auto Standard Mileage Allowances
| Business | 2012 = 55.5 cents 2011 = 55.5 cents (July-Dec) 51.0 cents (Jan-June) 2010 = 50.0 cents |
|---|---|
| Medical or Moving | 2012 = 23.0 cents 2011 = 23.5 cents (July-Dec) 19.0 cents (Jan-June) 2010 = 16.5 cents |
| Charitable | 2012 = 14.0 cents 2011 = 14.0 cents 2010 = 14.0 cents |
Section 179
Maximum Depreciation Deduction:
| 2012 | $125,000 |
|---|---|
| 2011 | $500,000 |
| 2010 | $500,000 |
| 2009 | $250,000 |
Health Savings Account (HSA) Contributions
| Minimum | Maximum | Contribution Limit | 55+ Contribution | ||
|---|---|---|---|---|---|
| 2012 | Individual | $1,200 | $6,050 | $3,100 | $1,000 |
| Family | $2,400 | $12,100 | $6,250 | $1,000 | |
| 2011 | Individual | $1,200 | $5,950 | $3,050 | $1,000 |
| Family | $2,400 | $11,900 | $6,150 | $1,000 | |
| 2010 | Individual | $1,200 | $5,950 | $3,050 | $1,000 |
| Family | $2,400 | $11,900 | $6,150 | $1,000 |
What is HSA?
A health savings account (HSA) is a tax-favored savings account created for the purpose of paying medical expenses.
- Tax-deductible
Contributions to the HSA are 100% deductible (up to the leagal limit) — just like and IRA. - Tax free
Withdrawals to pay qualified medical expenses are never taxed. - Tax-deferred
Interest earnings accumulate tax-deferred, and if used to pay qualified medical expenses, are tax-free. - HSA money is yours to keep
Unlike a Flexible Spending Account, unused money in your HSA isn't forfeited at the end of the year; it continues to grow, tas deferred.
Go to the IRS website for additional information on an HSA.
Any U.S. tax advice contained in the body of this web site was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.