IRS Releases 2009 Inflation-Adjusted Numbers

The IRS & California EDD recently released certain amounts that are adjusted for inflation. Several of these numbers are provided below for your reference. Payroll: Social Security wage base $ 106,800 California SDI taxable wage limit $ 90,669 California SDI withholding rate 0.1 % Maximum contributions to retirement plans: 401(k), 403(b), or 457 – up to age 50 $ 16,500 401(k), 403(b), or 457 – age 50 + $ 22,000 IRA – age 49 and below $ 5,000 IRA – age 50 + $ 6,000 SIMPLE IRA – up to age 50 $ 11,500 SIMPLE IRA – age 50 + $ 14,000 Defined Contribution Plans – any age $ 49,000 Standard deduction: Single $5,700 Head of Household $8,350 Married Filing Joint $11,400 Married Filing Separately $5,700 Other amounts: Personal exemptions per taxpayer and dependent $3,650 Child tax credit for each qualifying child under age 17 $1,000 Annual gift exclusion $ 13,000