FINANCIAL CORNER
IRA SEASON

As IRA season is upon us again, I thought the following information might be of interest to some of the readers:

IRA & Roth IRA: Individuals who are eligible may contribute up to $5,000 to IRAs for taxation year 2008. The $5,000 remains unchanged for year 2009. Additionally, individuals aged 50 and older may make an additional catch-up contribution of $1,000 for 2008 and 2009.

IRA REQUIREMENT MINIMUM DISTRIBUTION (RMD): On December 11, 2008, Congress passed the Worker, Retiree, and Employer Recovery Act of 2008 which
temporarily suspended RMDs for 2009 from IRAs and employer-sponsored defined contribution retirement plans.

SEP IRA: For 2008, employers may be able to contribute up to the lesser of $46,000 ($49,000 in 2009) or 25% of compensation to SEP IRAs.

If you are making plans for 2009, here is some additional information for those who are eligible to keep in mind:

SIMPLE IRA: Plan participants may elect to defer as much as $11,500 in 2009. Participants aged 50 and older may defer an additional $2,500 in 2009 for a total of $14,000.

401(k): Plan participants may defer up to $16,500 in 2009. Participants aged 50 and older may make an additional catch-up deferral of $5,500 in 2009 for a total of $22,000.

By Lily M. Hazelton, CLU, ChFC, CFPR
吳美華 - February 16, 2009

The information contained herein is not intended as a substitute for direct financial or legal advice. Securities America, Inc. does not provide tax advice. Please contact a tax or financial professional for further information.

Lily Hazelton, Registered Representative – CA Insurance License #0B13629
Securities offered through Securities America, Inc., a Registered Broker/Dealer, Member FINRA/SIPC
Advisory services offered through Securities America Advisors, Inc., an SEC Registered Investment Advisory Firm