Changes in IRS Inflation-Adjusted Tax Numbers for 2010
The IRS is required to adjust many tax numbers for inflation each year. Because there was little inflation last year, there’s very little change in 2010 numbers. Here are the numbers you’ll need for your 2010 planning.
- The maximum earnings subject to social security tax remains at $106,800. The earnings limit for those under full retirement age is $14,160. For those at full retirement age, there is no earnings limit.
- The maximum individual retirement account (IRA) contribution you can make in 2010 remains unchanged at $5,000 if you’re under age 50 and at $6,000 if you are 50 or older.
- The maximum amount of wages employees can put into a 401(k) plan remains at $16,500. The 2010 maximum allowed for SIMPLE plans is $11,500. If you are 50 or older, you can contribute up to $22,000 to a 401(k) and $14,000 to a SIMPLE plan.
For details or for assistance as you begin your 2010 tax planning, give our office a call.
