November 17, 2009

What’s New: 2010 Cost-of-Living-Adjustments

Filed under: Pension,What's New — Karen Ezzi @ 10:00 am

The 2010 Cost-of-Living Adjustments (COLAs) for determining annual limits for most retirement plans remain the same as in 2009, except for the following:

  • The adjusted gross income (AGI) limits for determining the deductible amount of traditional IRA contributions for single and married taxpayers who are active participants in an employer-sponsored retirement plan (see “Deductions” );
  • The AGI limits for determining the deductible amount of traditional IRA contributions for married taxpayers filing jointly who aren’t active participants in an employer-sponsored retirement plan but whose spouses are (see “Deductions”) ;
  • The AGI limits for determining the maximum Roth IRA contributions permitted for taxpayers whose filing status is married filing jointly (see “Phaseouts) and;
  • The adjusted gross income limits for taxpayers who qualify for the 50% nonrefundable tax credit on qualified retirement savings contributions (see “Credit for Pension Contributions”).

Click here for a table summarizing the applicable limitations.

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November 10, 2009

What’s New: FDIC Insurance Coverage Increase Extended

Filed under: Compliance,Operations,What's New — Tags: — Karen Ezzi @ 12:23 pm

Superseding the October 3, 2008 changes to FDIC insurance coverage, the FDIC has extended the temporary increase on deposits held at FDIC-insured institutions through December 31, 2013. On January 1, 2014, the standard insurance amount will return to $100,000 per depositor for all account categories except for IRAs and other certain retirement accounts (including IRAs) which will remain at $250,000 per depositor.

FDIC extended its temporary Transaction Account Guarantee Program through June 30, 2010. This program provides depositors with unlimited coverage for noninterest-bearing transaction accounts at participating FDIC-insured institutions. The unlimited coverage applies to all personal and business checking deposit accounts that do not earn interest (including Demand Deposit (DDA) accounts), low-interest NOW accounts (NOW accounts that cannot earn more than 0.5% interest), Official Items, and IOLTA accounts.

Click here for information about the temporary extensions on these increases.

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