Both Traditional and ROTH IRA maximum contributions are increased to $5000 per individual and $6000 per individual age 50 or older.

Participants in 401(k) and 403(b) plans may contribute up to $15,500 in 2008, and $20,500 if age 50 or older. Some 401(k) plans may offer ROTH contributions for plan participants as an alternative to regular tax deductible monies.

In 2008, the lifetime exemption remains at $2 million, and the maximum (federal) tax rate is 45%. These amounts will change over the next few years, and the tax is scheduled to be repealed in 2010. More to come…

If you’ve owned a life insurance policy for more than 5 years, there’s a 50/50 chance the originally issuing company doesn’t exist anymore. Mergers and acquisitions seem to be a daily occurrence in corporate America, and financial services firms are among the most active. The most common question: How does this affect my coverage? Contractually, there are no differences. Life insurance policies are legally binding contracts, and the acquiring firm must abide by its terms. What may be affected are specific company guidelines; the ability to make logistical changes, i.e. reducing face amounts, conversion options, etc.

For 2008, the new Part A deductible is $1,024 per benefit period; Part A coinsurance for hospital (days 61-90) is $256 per day; lifetime reserve coinsurance (days 91-150) is $512 per day; skilled nursing facility coinsurance (days 21-100) is $128 per day. Medicare Part B annual deductible is $135. The Part B premium cost is $96.40 per month. Those with higher incomes may pay even more. $

Medicare Part "D" programs are now available which provide prescription benefits to those covered by Medicare. Medicare "supplement" plans are also still available, as well as the Medicare Advantage program.

Those with active qualified plans (IRAs, TSAs, etc.) must begin taking annual minimum distributions no later than April 15^th of the year following the year in which they reach 70 ½. Contact us for more information.