The following is a non-exhaustive list of frequently requested financial, education, and estate tax planning numbers for the 2009 tax year. This list is designed as a desk reference for use at home or at the office. We encourage you to use this guide in collaboration with your accountant or tax professional. Siena Capital Management will update this tax guide every January in The Greater Lansing Business Monthly.

INCOME TAX AND CAPITAL GAINS RATES, WITH DEDUCTIONS

Mileage rates (2008) (1)

• 50.5 cents per mile for business miles driven
• 19 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

RETIREMENT RATES

Social Security earnings limit
Not full retirement age $14,160
Full retirement age unlimited

IRA Traditional and Roth contribution
Standard $5,000
50 and over catch-up $1,000

SIMPLE deferral limit
Standard $11,500
50 and over catch-up $2,500

401(k) deferral limit
Standard $16,500
50 and over catch-up $5,500

HSA contribution limit
Self only / Family $3,000/$5,950
55 & older catch up $900

Estimated Roth IRA phaseout
Single / Head of household $105,000 – $120,000
Joint $166,000 – $176,000

Estimated IRA phaseout
Single $55,000 – $65,000
Joint $89, 000 – $109,000

Maximum annual payout at age 62 from a defined benefit plan $195,000

Maximum annual contribution to a defined contribution account $49,000

Maximum elective 403(b) deferrals $16,500

457 Deferral limit $16,500

Maximum annual compensation that can be used to determine benefits or contributions under a qualified plan $245,000

Test to identify highly compensated employees $110,000

EDUCATION SAVINGS TAX RATES

Student Loan Interest $2,500 (subject to phaseout)

Education tax credits
Hope Scholarship Credit $1,800 (per student)
Lifetime Learning Credit $2,000 (per taxpayer return)

Coverdell ESAs $2,000 (subject to phase out and not tax deductible)

PERSONAL RESIDENCE

First-time homebuyers tax credit (2) $7,500 (subject to phaseout)

Maximum exclusion for sale of a residence (occupied 2 out of 5 years)
Single $250,000
Married filing Jointly $500,000

Home mortgage interest deduction $1,000,000 (maximum amount of note)

Home equity interest deduction $100,000 (maximum amount of note)

GIFT & ESTATE TAX

Annual gift tax exclusion $13,000 ($26,000 for joint gift)

Estate tax applicable exclusion amount $3,500,000

Maximum estate tax rate 45%

by By Stephen L. Hicks, JD, MS and Roger L. Millbrook, JD, CPA/PFS

Stephen L. Hicks, JD, MS, and Roger L. Millbrook, JD, CPA/PFS, are fee-only fiduciary investment advisers and principals representing high-net worth investors at Siena Capital Management, LLC, and with its affiliate, Siena Retirement Services, dedicated to serving the retirement and pension needs of small to mid-sized businesses and professional practices. Both advisers are accountants and hold law degrees as well as other advanced degrees and designations in the area of financial services.

(1) As of the date of writing, the 2009 mileage rates have not been published by the IRS.
(2) The tax credit of up to $7,500 is available between April 8 2008 and July 1, 2009 for first-time home buyers. First-time homebuyers means that you have not owned a principal residence in the U.S. for at least 3 years.