KM Financial Services

Tax Benefits Update 2008

Contributions and Benefits                              2008             2007

401K elective deferral limit                                                        $15,500                $15,500

        401K catch-up deferral                                                              $5,000                  $5,000

        Definition of highly compensated employee                              $105,000              $95,000

        Annual compensation limit for benefit purposes                        $230,000              $225,000

        Annual compensation limit for key employee determination      $150,000              $145,000

        SEP minimum compensation                                                     $500                     $500

        SIMPLE elective Deferral limit                                                   $10,500                $10,500

        Social Security Wage Base                                                       $102,000              $97,500

        Maximum contribution to Health Savings Account               

            -Single coverage (HSA)                                                         $2,900                  $2,850

            -Family coverage (HSA)                                                         $5,800                 $5,650

        Qualified Transportation Benefit               

            -Parking (per month)                                                              $215                     $210          

            -Transit Pass (Per month)                                                      $115                     $110 

Please Note - amounts could possibly vary depending on individual situations