Deductions
Health Savings Account Contribution Limits – 2012 and 2013
With the popularity of high deductible medical insurance plans on the rise, an increasing number of people are eligible to contribute to a Health Savings Account (HSA). Employee or individual contributions to a Health Savings Account are either tax-deductible when made from payroll or deductible on the first page of the 1040 tax return. As […]
401(k) Contribution Limit for 2013
The 401(k) contribution limit will increase to $17,500 for 2013. No change has been made to the “catch-up provision” for plan participants age 50 and older. They will still be able to contribute an additional $5,500 for a total of $23,000. As with the IRA contribution limit, this is an aggregate participant contribution limit meaning […]
2013 IRA Contribution Limits
The maximum allowable contribution to Traditional and Roth IRAs will increase to $5,500 in 2013. $5,500 is the aggregate contribution limit meaning that an individual can contribute to both a Traditional and Roth IRA but the total contribution cannot exceed $5,500. A “catch-up provision” is available to those age 50 or older allowing for an […]
IRS raises standard mileage rate in 2013
The IRS has issued the 2013 standard mileage rates for 2013. Effective January 1, 2013, business miles driven are eligible for a deduction at a rate of 56.5 center per mile. This is an increase of a penny per mile from the 2012 rate. Note that mileage rates for medical and moving are lower than […]