IRS ANNOUNCES STANDARD MILEAGE RATES AND PENSION CONTRIBUTION COLA’S FOR 2011

Glenn Bailey, CPA

IRS announces standard mileage rates for 2011 for use of an automobile
These are the maximum amounts that can be claimed as a tax deduction or used to reimburse employee use of personal vehicles. Proper records are required to substantiate deductible use.

                   Business use: 51 cents per mile
Moving: 19 cents per mile
Medical care: 19 cents per mile
Charity:  14 cents per mile

 The depreciation component of business use is 22 cents per mile.

IRS announces no cost of living adjustments for most pension contribution amounts

The most widely used plan limits are:
For 401(k) and 403(b) accounts the maximum contribution remains at $16,500 with a $5500 catch up contribution for those 50 and older.

 The maximum contribution amounts to a defined contribution account remains at $49,000   per person, with the income calculation base remaining at $245,000.

IRA (traditional or Roth) contribution limits remain at $5000 with a $1000 catch up contribution for those 50 and older.

SIMPLE IRA contribution limits remain at $11,500 with a $2500 catch up contribution for those 50 and older.

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