We Prepare Tax Returns!

We prepare most type of tax returns:


S Corporation.

C Corporation.




Pay Your CPA

Enter $ Below
Other Amount:
Your Email Address:

Tax Accountant Reviews IRS 2010 Retirement Plan Contribution Limits

An tax accountant and CPA in Wilmington NC discusses pension limits

As Your Tax Accountants, We Run the Maze for You

It might be optimistic, in a recession to look at the maximum retirement plan elective deferral amounts for 2010.  And they haven’t changed from 09.

  • Employee 401(k) contributions are capped at $16,500, or $22,500 if the participant is > 50 years old.
  • Combined employee and employer 401(k) elective deferral is $49,500, or 54,000 if the employee is > 50 years old.
  • SIMPLE elective maximum deferrals: $11,500, $14,00 if > 50 years old.
  • SEP contribution limit: $49,000.
  • IRA: $5000, $6,000 if taxpayer > 50 years old. Income phase-outs to limit detectability increased slightly.

Elective deferral contribution limits for pension plans are basically unchanged in 2010.
Gary Bode, CPA
Wilmington NC Accountant

Good news for some; the long standing rule that taxpayers with > $100,000 Adjusted Gross Income can’t convert Roth IRAs is gone!

The Social Security tax wage cap is unchanged for 2010, $106,800. Some good salary strategy available here.

“Stuffing” high salaies is a legitimate way to save 12.4% of employment taxes on wages above the Social Security wage cap. This could mean combined company and personal tax savings of >$6,200, albeit every other year.”
Gary Bode, CPA – Wilmington NC Tax Accountant

The ARRA is foregoing the tax on cancellation of debt “income” for some businesses that restructured in 2009. Naturally, there are wrinkles.

During 2009 the basis for for any partner in a LLP or LLC, to claim material participation to avoid the passive activity loss (if income) improved, via classifying all partners as general partners for this hurdle. This is true even for single member LLCs.

As always, taxation continues to evolve.

For a free initial consult, please call (910) 399-2705

Comments are closed.