2009 IRS Numbers

For 2009, the maximum contribution for 401k/403b plans is $16,500 for employees younger than 50 years old and $22,000 for those 50 or older if the plan allows for catch-up contributions. The annual gift tax exclusion is $13,000 per person. The estate tax exemption for this year is $3.5 million. If there is any way to save a little bit more in your retirement plan, now would be a good time to do it. Seems like saving is in vogue again (thank goodness), there is no better way to get a tax break and be able to buy investments at levels that, by most standards, are below intrinsic value than by contributing more to your retirement plan. Even $50 extra a month is worth it.