2008 Annual Financial Planning Limits

The following are the annual financial planning limits for 2008.

Traditional and Roth IRAs
Traditional and Roth IRA Contribution Limit	$5,000
Traditional and Roth IRA Catch-Up Contribution	$1,000
IRA Deduction Phaseout for Active Participants Single Married filing jointly Married filing separately	$53,000 - $63,000 $85,000 - $105,000 $0 - $10,000
IRA Deduction Phaseouts for Spousal Contributions Married filing jointly	$159,000 - $169,000
Roth IRA Contribution Phaseout Single Married filing jointly Married filing separately	$101,000 - $116,000 $159,000 - $169,000 $0 - $10,000
Roth IRA Conversion Phaseout Single Married filing jointly Married filing separately	$100,000 $100,000 ineligible


Employer Retirement Plans
Elective deferrals for 401(k), 403(b), 457, and SAR-SEPs	$15,500
401(k), 403(b), 457 and SAR-SEP Catch-Up Contribution	$5,000
Defined Contribution Plan Limit	$46,000
SEP IRA Contribution	$46,000
SEP Minimum Earnings Limit	$500
Maximum Annual Defined Benefit Limit	$185,000
SIMPLE IRA and SIMPLE 401(k) Contribution	$10,500
SIMPLE IRA and SIMPLE 401(k) Catch-Up Contribution	$2,500
Maximum Includable Compensation	$230,000
Highly Compensated Employee	$105,000
Key Employee	> $150,000
PBGC Maximum Monthly Benefit	$4,312.50

Federal Income Taxes
Personal exemption	$3,500
Phaseout of personal exemption Single Married filing jointly Head of Household Married filing separately	$159,950 $239,950 $199,950 $119,975
Standard Deduction Single Married filing jointly Head of Household Married filing separately	$5,450 $10,900 $8,000 $5,450
Elderly or blind additional deduction Single Married	$1,350 $1,050
Phaseout of itemized deductions Single Married filing jointly	$79,975 $159,950
Kiddie tax standard deduction	$900

Federal Estate and Gift Taxes
Annual Gift Tax Exclusion	$12,000
Estate Tax Exclusion	$2,000,000
Generation-Skipping Tax Exclusion	$2,000,000
Federal Gift Tax Exclusion	$1,000,000

Education Funding Incentives
Coverdell Education Savings Account Contribution	$2,000
Phaseout for Education Savings Account Single Married filing jointly	$95,000 - $110,000 $190,000 - $220,000
Phaseout for exclusion for EE bonds Single Married filing jointly	$67,100 - $82,100 $100,650 - $130,650
Phaseouts of Hope Scholarship and Lifetime Learning Tax Credits Single Married filing jointly	$48,000 - $58,000 $96,000 - $116,000
Phaseouts of Deductibility of Student Loan Interest Single Married filing jointly	$55,000 - $70,000 $115,000 - $145,000

Social Security*
Taxable Wage Base	$102,000
Social Security Tax Rate Old-Age, Survivors and Disability Insurance Hospital Insurance Total	6.20% 1.45% 7.65%
Earnings limitations for Social Security Benefits Before Normal Retirement Age At or After Normal Retirement Age	$13,560 $36,120
Cost of living adjustment	2.3%
Quarter of coverage	$1,050
Maximum benefit: retiring at Normal Retirement Age	$2,185

Medicare
Monthly premium: Part A/Part B	$423/$96.40
Part A coverage First 60 days, patient paid deductible Next 30 days, patient pays per day Next 60 days, patient pays per day (lifetime reserve days)	$1,024 $256 $512
Part B coverage Deductible Coinsurance	$135 20%
Skilled Nursing Benefits First 20 days, patient pays per day Next 80 days, patient pays per day Over 100 days, patient pays per day	$0 $128 All costs

Health Savings Account (HSA)
Minimum Deductible Amount Single Family	$1,100 $2,200
Maximum Out-of-Pocket Amount Single Family	$5,600 $11,200
HSA Contribution Maximum Single Family	$2,900 $5,800
Catch-Up Contributions (age 55+)	$900

Long Term Care Insurance
Per diem daily limit	$270

Premium as a deductible medical expense limitation
Age 40 or under Age 41 - 50 Age 51 - 60 Age 61 - 70 Age 71 or older	$310 $580 $1,150 $3,080 $3,850

* See www.ssa.gov for definitions and up-to-date information

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