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- In
2008, individuals under age 50 may invest $15,500 in a 401(k) or 403(b) plan. For those 50 years or older,
the Catch-Up Contribution Limit remains $5,000 for a total of $20,500. Maximum SIMPLE contributions remain $10,500 and
the SIMPLE Catch-Up Deferral remains $2,500.
- The Federal Estate Tax Exclusion amount remains
$2,000,000 through 2008. The amount for 2009 is $3,500,000.
- Annual Exclusion for Gifts for
2007: For calendar year 2007, the first $12,000 of gifts to any person (other than gifts of future interests
in property) are not included in the total amount of taxable gifts made during that year.
- Standard Mileage
Rates Adjusted for 2008: The business standard mileage rate is split for 2008. From January 1 through June
30, the rate is 50.5 cents a mile. In response to the record high gas prices, the IRS raised this mileage reimbursement
rate to 58.5 cents-per-mile for business travel beginning July 1 through December 31, 2008. The standard mileage
rate for medical and moving expenses also increased from 19 cents-per-mile to 27 cents-per-mile effective July 1 through December
31, 2008. The rate for providing services to charitable organizations remains at 14 cents-per-mile.
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