SUPPLEMENTAL ANNUAL UPDATE ISSUE
Last Updated 10/07/02

Social Security Base

1996........................ $ 62,700

1997........................ $ 65,400

1998....................... $ 68,400 6.20 %

1999........................ $ 72,600 6.20 %

2000........................ $ 76,200 6.20 %

2001........................ $ 80,400 6.20 %

2002........................ $ 84,900 6.20 %

 

 

Medicare

1998....................... No Limit 1.45 %

1999....................... No Limit 1.45 %

2000....................... No Limit 1.45 %

2001....................... No Limit 1.45 %

2002....................... No Limit 1.45 %

 

 

FUTA

1999........................ $ 7,000 .8% Max $ 56

2000........................ $ 7,000 .8% Max $ 56

2001........................ $ 7,000 .8% Max $ 56

2002........................ $ 7,000 .8% Max $ 56

 

 

New Jersey SUI

1998........................ $ 19,300

1999........................ $ 20,200

2000........................ $ 21,200

2001........................ $

2002........................ $

Employee rate.............. .925%

UI/DI base week amount..... $ 144

Maximum weekly benefit..... $ 407

 

New Jersey State W/H .......................... 1.4%-6.37%

 

 

New York SUI

1998........................ $ 7,000

 

Pennsylvania State SUI

1999........................ $ 8,000

 

Pennsylvania State W/H

1999........................ 2.8%

South Carolina State SUI

1999........................ $ 7,000

 

Household Employee social security reporting threshold

1999........................ $ 1,100

2000........................ $ 1,200

2001........................ $ 1,300

 

Minimum Wage Fed'l, PA, NJ ....................... $ 5.15

Effective 3/31/2000 NY

 

Important Age Information as they related to tax provisions

Age 55:

Penalty-free withdrawals from company retirement plans upon separation from service.

Age 59_:

No penalty on any withdrawals from IRAs and retirement plans/accounts

Age 62:

Earliest age that Social Security retirement benefits can be collected. (Widows and widowers can receive these benefits as early as age 60).

 

Age 65 to 67:

Full Social Security benefits. The exact age depends on the year in which you were born.

 

Age 70:

Earned income no longer reduces Social Security benefits.

Under Age 65:

$1 is cut from your benefit for every $ 2 earned above threshold

1998........................ $ 9,120

1999........................ $ 9,600

2000........................ $ 10,000

From ages 65 to 69:

$ 1 is cut for every $ 3 earned above Threshold

1998... $ 14,500

1999........................ $ 15,500

2000........................ $ -0- repealed in 2000 no

limit (was $ 17,000)

 

Benefits upon Retirement During Year at Age 65(And always earned maximum wage)

Primary Insurance Amount

1999........................ $ 16,476

2000........................ $ 17,196

Maximum Family Benefit

1999........................ $ 28,833

2000........................ $ 30,093

 

 

Age 70_:

Minimum distributions must be withdrawn from most retirement accounts. But-you can continue to invest tax-deferred in a Roth IRA. No penalty on any withdrawals from IRAs and retirement plans/accounts

 

Annual Maximum Defined benefit plan

1999........................ $ 130,000

2000........................ $ 135,000

2001........................ $ 140,000

2002........................ $ 160,000

 

 

Annual Maximum Defined contribution plan

1999........................ $ 30,000

2000........................ $ 30,000

2001........................ $ 35,000

2002........................ $ 40,000

 

Maximum Annual Compensation Limit

1999........................ $ 160,000

2000........................ $ 170,000

2001........................ $ 170,000

2002........................ $ 200,000

 

Maximum Annual Compensation for Highly Paid Individuals(HCE)

1999........................ $ 80,000

2000........................ $ 85,000

2001........................ $ 85,000

2002........................ $ 90,000

 

Grandfather Rule for Government Plans

2001........................ $ 285,000

2002........................ $ 295,000

 

Exclusion for elective deferrals under 401(k) plans

1999........................ $ 10,000

2000........................ $ 10,500

2001........................ $ 10,500

2002........................ $ 11,000

2003........................ $ 12,000

2004........................ $ 13,000

2005........................ $ 14,000

2006........................ $ 15,000

 

Exclusion for elective deferrals under 457 plans

2001........................ $ 8,500

2002........................ $ 11,000

 

Exclusion for elective deferrals under 403(b) plans

2001........................ $ 10,500

2002........................ $ 11,000

 

 

Exclusion for elective deferrals under SIMPLE plans

2001........................ $ 6,500

2002........................ $ 7,000

SEP Coverage

2001........................ $ 450

2002........................ $ 450

SEP Compensation Limit

2001........................ $ 170,000

2002........................ $ 200,000

Tax Credit ESOP Maximum Balance

2001........................ $ 780,000

2002........................ $ 800,000

Amount for Lenghtening of 5-Year ESOP Period

2001........................ $ 155,000

2002........................ $ 160,000

 

Annual Compensation Requiring Simplified Employee

Pension (SEP) Contribution

2001........................ $ 6,500

 

IRA Contribution Limit

1999........................ $ 2,000

2000........................ $ 2,000

2001........................ $ 2,000

2002........................ $ 3,000

2003........................ $ 3,000

2004........................ $ 3,000

2005........................ $ 4,000

2006........................ $ 4,000

2007........................ $ 4,000

2008........................ $ 5,000

 

Catch-up Contribution Limit (Age 50 of older) for 401(k), 403(b) and 457

2001........................ $ N/A

2002........................ $ 1,000

2003........................ $ 2,000

2004........................ $ 3,000

2005........................ $ 4,000

2006........................ $ 5,000

 

Catch-up Contibution Limit (Age 50 of older) for IRAs and SIMPLE Plans

2001........................ $ N/A

2002........................ $ 500

 

Exclusion from Federal Estate Taxes

1999........................ $ 650,000

2000........................ $ 675,000

2002........................ $ 700,000

2006........................ $ 1,000,000

 

Automobile optional standard mileage rate

1999........................ $ .31 (Charity .10; Med .14)

2000........................ $ .32_ (Charity .10; Med .14)

2001........................ $ .34_5(Charity .12; Med .14)

 

Automobile Leased standard automobile cost

1999........................ $ 27,100

2000........................ $ 27,300

 

Equipment purchased expensed under IRC 179

2000........................ $ 19,000

2001........................ $ 24,000

 

Please contact our office or your advisor to discuss the specific merits and applications of any material presented herein. The information is intended to inform and alert the reader of tax and accounting items of interest, but since it is presented in abbreviated form, time-sensitive and not all-inclusive, it should be implemented only upon in-depth consultation with your appropriable advisors.

Return to previous page.