KM Financial Services

Tax Benefits Update 2010

Contributions and Benefits                              2010             2009

401K maximum contributions (under 50)                                   $16,500                $16,500

401K maximum contributions (50 & older)                                 $22,000                $22,000

        401K catch-up deferral                                                              $5,500                  $5,500

        Definition of highly compensated employee                              $110,000              $110,000

        Annual compensation limit for benefit purposes                        $245,000              $245,000

        Annual compensation limit for key employee determination      $160,000              $160,000

        IRA maximum contributions                                                       $5,000                   $5,000

        IRA maximum contributions (50 & older)                                   $6,000                   $6,000 

        SIMPLE elective Deferral limit                                                   $11,500                $11,500

        Maximum contribution to Health Savings Account               

            -Single coverage (HSA)                                                         $3,050                  $3,000

            -Family coverage (HSA)                                                         $6,150                 $5,950

        Qualified Transportation Benefit               

            -Parking (per month)                                                              $230                    $230           

            -Transit Pass (Per month)                                                      $230                    $230

        Mileage Rate - Business                                                            50 cents/mile       55 cents/mile

Please Note - amounts could possibly vary depending on individual situations