Contributing to Both Roth Ira and Traditional 401K

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					                                                           523b2a0e-5e0c-40b9-93bd-922bba3edf01.xls                                                  pg 1


                                                   Pellini Gold Cordes, LLC.
                                                   1040 Tax Data - Key Items
GG 12/01/2009                                                 2009                     See    www.irs.gov   for more information
JJP 12/08/2009
       11 Brackets
                            2009        Single                MFJ                      MFS                   HH
                                    Tax        Inc.        Tax          Inc.        Tax       Inc.       Tax                  Inc.
                    10.00%                 0          0           0           0           0         0          0                    0
                    15.00%              835       8,350      1,670       16,700         835     8,350      1,195               11,950
                    25.00%            4,675     33,950       9,350       67,900       4,675   33,950       6,228               45,500
                    28.00%          16,750      82,250      26,638      137,050      13,319   68,525      24,215              117,450
                    33.00%          41,754     171,550      46,742      208,850      23,371  104,425      44,585              190,200
                    35.00%         108,216     372,950     100,895      372,950      50,447  186,475 104,893                  372,950
            Child under age 18 - unearned income same as parents on income over 950 (950 exemption +950 at 10%))

     1405 AMT                AMT exemption in 2009
           Exemption            46,700                  70,950                               35,475               46,700
           Phased out - 25% of amount AMT AGI exceeds:
                       starts 112,500                 150,000                              75,000                112,500
     1401               ends 299,300                  433,800                             216,900                299,300
           Rates
                     26.00% 175,000                   175,000                               87,500               175,000
                     28.00% over 175,000           over 175,000                        over 87,500             over 175,000

      126 Standard Deduction
                        2009                        5,700                    11,400                    5,700                    8,350

              Additional Standard Deduction for blind or age 65 or older
                                                    1,400                    1,100                     1,100                    1,400
              Children who are dependents
                                      950         or      300 plus earned income up to 5,700

      133 Exemptions              2009
                                    3,650
                                Reduced by 2% for each $2,500 of AGI over                                                               phase out of
                            2009 166,800                  250,200                         125,100                208,500                exemptions reduct-
                                                                                                                                        ion is two-thirds in 2009


      137     Dependents                 2,009
                                                   3,650
  137/143     Child             under age 19 at year end, or
                                under age 24 and still in full time student at year end
              Others - must have less than 3,650 of income

      139     children of divorced parents-- see special rules



     2648 SS Tax Base                2007         2008          2009       2010
                                    97,500       102,000       106,800    106,800


            Employee Benefits

      860     Medical Savings Account (MSA)
     1020      Used in conjunction with "high deductible" health insurance
               Used solely to pay unreimbursed health care expenses of taxpayer, spouse, and dependents

                                                      Individual                Family
                                                     2008         2009        2008         2009
              Min deductible                        1,950        2,000       3,850        4,000
              Max deductible                        2,900        3,000       5,800        6,050
              Max Out of pocket                     3,850        4,000       7,050        7,350
              Contributions limitation            65% of deductible        75% of deductible


      861     Cafeteria Plans
              Offers employees choice of taking cash or receiving qualified benefits
              Cash is included in gross income as compensation
              Qualified benefits are excludable to extent allowed by law
                                                           523b2a0e-5e0c-40b9-93bd-922bba3edf01.xls                                                  pg 2

      861      Flexible Spending Accounts
               Allow employees to make pre-tax contributions to a FSA account for reimbursement of health and/or dependent care expenses
               Unused contributions are forfeited at the end of each year

     859A      Health Savings Account (HSA)
    1020A      Used in conjunction with "high deductible" health insurance

                                                          Individual               Family
               Plan design requirements:                 2008         2009       2008       2009
                Min deductible                          1,100        1,150      2,200      2,300
                Max deductible                          2,900        3,000      5,800      5,950
                Max Out of pocket                       5,600        5,800     11,200     11,600

               Prior to age 65:
               An individual or spouse may make annual pre-tax contributions equal to the deductible up to a max of $3,000 single or $5,950 family
               Tax-free withdrawls may be made as the allowable medical expenses are incurred

               After age 65:
               Distributions will be tax-free provided they are used for eligible heath care expenses.
               Other distributions will be included in income and assessed a 10% penalty

               Eligible expenses include actual medical expenses, retiree heath ins premiums, COBRA premiums, LT care premiums
                 and premiums for a health contract while receiving unemployment compensation. Eligible expenses DO NOT include
                 regular medical insurance premiums and Medicare supplemental policies.

               Upon death, HSA may be passed on to spouse tax-free or to another beneficiary on a taxable basis.



Deductions

             Employee Business
     941B     Statutory Employee - Not subject to 2% floor

      947      Mileage ---         1/1/2009 to 12/31/2009 = 55 cents/mi.               (Auto Sales tax is a page 1 "above the line deduction" for 2009)

      910      Meals               50% exclusion
      915                          100% deduction for on site lunches for convenience of employer and party/picnic

      910      Meals -- interstate truck drivers while away from home - deductible amount                         (Employees subject to DOT regulation)
                                     2006/07     2008/-->                                                         Air trans, railroad ees, truck & bus drivers
                                      75.00%        80.00%

      918      Business Gifts
               Limited to $25 per recipient per year.

     954A      Travel             (PA now a low cost state)
                                             On or after October 1, 2008
                                                             Meals &     Max Per
                                               Lodging      Incidental    Diem
               Hi cost                                198           58        256
               Low Cost                               113           45        158
               incidental expense per diem                            3

      961      Home office
               exclusive space, used regularly as a principal place of business or to see clients/customers
                need as a base to get auto mileage from home to various jobs

941C/1084      Qualified Classroom Expenses -"miscellaneous itemized" deduction available to teachers, instructors, counselors, teachers, and aides.
                For unreimbursed expenses incurred in connection with books, supplies, computer equipment, and supplementary materials
                used in the classroom.
                Must have worked at least 900 hours during school year at a school that provides elementary or secondary education.

                 2008/9 -- up to $250 per year / need documentation.
                 amounts over $250 are deductable as miscellaneous itemized deductions
                                                  523b2a0e-5e0c-40b9-93bd-922bba3edf01.xls                                               pg 3


       Non Business/Itemized Deductions

         Itemized Phaseout - in General
1014         3% above following amounts is subtracted from total itemized
                     2009         Single                  MFJ                          MFS                      HH

                               166,800                  166,800                      83,400                166,800
                            note : medical /investment int / casualty and theft are not subject to 3% calc
                            elimination of phase out commences in 2006
1016     Medical
         In excess of 7.5% of AGI
                             1/1/2009 to 12/31/2009 = 24 cents/mi.
                             Special Schooling
                             Nursing home -- 100% of meals
                             Capital improvements in excess of increase in value to home
1018                         Paid w/in 1 year of decedents death may go on last 1040 if incurred prior to death
1020                         MSA's - rare
1028     Taxes               Real Estate, State and Local --- NOT deductible for AMT
                             May deduct state sales taxes in lieu of state & local income taxes for tax years 2008 & 2009
                             Auto Sales tax is a page 1 "above the line deduction" for 2009
1043     Interest -- Must be traced to the original use of proceeds
                             must be on taxpayer's debt

1045                        Personal = non deductible

1044                        Investment interest
                               Limited to investment income (int,div's, other passive inc.)
1094                            Capital gains are NOT inv income unless an election is made to tax such at ordinary rates

1047                        Qualified Residence interest
                              Primary residence and
                              ONE Other
                             Limit
                                 1,000,000 primary plus 100,000 GRAND TOTAL DEBT

                            Interest on second Mortgage (or home equity loan) is limited to interest on the first $100k of HE debt

                            See portion of Mtg interest from a rental property that is used over 10% of rented days or 14 days

1048                        Home Equity Indebtedness
                             deductible to the extent of that it does not exceed the principal amount of acquisition debt
                             immediately before refinancing, proceeds can be used for personal expenditures

1082                        Education Loans
                            elimination of 60 mo time period, can be deducted on voluntary payments
                             Dependents can't claim
                             Must be obligor
                             Loan must have been SOLELY for education costs (NO MIXED LOAN)
                                        w/in 60days and can use CCard first then loan
                                        Loan can't be from related party
                              Limits
                                           2003-->
                                            2,500     Not changed

                                  Phase outs begin at:   and reduce $166.66 for each $1,000 of inc.
                                         Single           MFJ        MFS           HH
                                  start     60,000        120,000           0      60,000
                                   end      75,000        150,000           0      75,000


1085                        Interest paid on loans to purchase/carry obligations that pay tax exempt income/interest is NOT deductible
                                                 523b2a0e-5e0c-40b9-93bd-922bba3edf01.xls                                                 pg 4

1058   Contributions

1059                      Priority    Limits                                Types
                               1      50% of AGI                            501C3 charities
                               2      30% of AGI                            Non operating foundations (war vets), fraternal orgs., cemeteries
1062                           3      30% of AGI - Certain cap gain         (appreciated securities)
                               4      20% of AGI - Appreciated stock to a non-operating foundation

                          American Jobs Act - Beginning in 2005, taxpayers contributing a qualified vehicle valued at over $500 to a charity
                          must meet new more stringent substantiation requirements.
                            taxpayer must obtain from charity written statement identifying taxpayer, their social security number and
                            the vehicle's identification number. If the vehicle is sold, the gross proceeds are the taxpayer's contribution.
                            If the vehicle is not sold, the fair market value is used.

1060                      Carryforward 5 year

                          LIFO (current yr. before prior yr.)

                          Types
                                      Cash/check (must have receipt if over $250. and for all cash)
                                      2009 Mileage - 14 cents/mile
                                      Out of Pocket
                                      Value of services NO NO NO
                                      Value of rental vacation house NO NO NO -- only out of pocket cost
                                      Item purchased - cost in excess of value received
1064                                  Appreciated property
1062                                     Ordinary income property - Basis
                                         Long term Capital Gain
                                            FMV if subject to 30% limitation
                                            otherwise basis
                                            NEVER SELL APPRECIATED ASSETS AND GIVE CASH
                                            NEVER GIFT DEPRECIATED ASSETS - SELL THEM AND GIVE THE CASH

                                      See JJP/DGG re: charitable remainder trust for elder individuals with a large block of
                                      appreciated securities

1064                                  Unrelated student (elementary or high school) in home sponsored by a charitable org.
                                           Limited to $50/mo.

1061                      Over $500 - form 8283 part A
                          Over $5,000 - 8283 part B AND an APPRAISAL


1073   Moving Expenses             Old home to New home distance >Old work - old home miles + 50
            not 2%     Transport of household goods                    Must keep job 39 weeks (78 self employed)
                       Travel (lodging but not meals)
                       1/1/2009 to 12/31/2009 = 24 cents/mi. or actual
1080   Union Dues
                                                                                  When you can, trade
1081   Job Hunt
                                                                                  business expenses for
                          Even if not successful                                  wages.
                          MUST be SAME trade or bus

1082   Education
                          even if leads to a degree
                          maintains or improves skills or
                          meet express requirements of employer

                          NON Deductible if leads to a new trade or
                          meets minimum requirements to qualify for present employment
                          Continuing education is deductible

       $ 4,000 AGI deduction allowed for 2009
                         IF AGI is less than $65,000 single / $130,000 Married

1086   Investment Expenses (advisory fees)
         subject to 2%

1093   Legal fees for production of income e.g. to negotiate employment contract
         subject to 2%                 Divorce legal fees Non Ded (except part related to tax and/or financial planning)

1748   Casualty/theft/involuntary conversion
       to the extent exceeds 10% of AGI (inexcess to $100 floor per loss)
                                                    523b2a0e-5e0c-40b9-93bd-922bba3edf01.xls                                             pg 5


1173 NOL's
        back 2 years forward 20
     *** For 2008, carryback period is increased up to 5 years if an election is made.



1195 Hobby Loss
       Expenses only to the extent of revenue                        Be careful about Hobby loss
       Income on page 1 of 1040
       Expenses on sch A AND subject to 2% limit

         Hobby = if no profits 3 of 5 years I.e. need 3 profit yrs out of 5 to not be a hobby

2062 Rental real estate
     Losses allowed up to $25,000 IF active participant
     Phased out between $100k to $150k


1214 Auto depreciation
                                2009          2008         2007           2006        2005         2004       2003         2002
                           1     10960*        10960*          3060           2960       2960      10610** 10710*** 7660****
                           2       4800          4800          4900           4800       4700        4800        4900         4900
                           3       2850          2850          2850           2850       2850        2850        2950         2950
                           4       1775          1775          1775           1775       1675        1675        1775         1775
                           5       1775          1775          1775           1775       1675        1675        1775         1775
       * The 10, 960 limit applies only to vehicles that qualify for additional 50% depreciation (new), otherwise the limit is 2,960
       ** The 10, 610 limit applies only to vehicles that qualify for additional 50% depreciation (new), otherwise the limit is 2,960
       *** The 10, 710 limit applies only to vehicles that qualify for additional 50% depreciation (new), otherwise the limit is 3,060
       **** The 7,660 limit applies only to vehicles that qualify for additional 30% depreciation (new), otherwise the limit is 3,060


1300 TAX Credits

1301     Child and dependent care

                             Under age 13 or older if handicapped

                             Payments may be made to a relative if not claimed as a dependent and a child not under 19

                             Overnight camp does not count

                             Qualified expenses limited to wages of lower earnings spouse unless full time student or disabled

                             20% to 35% of expenses depending on AGI
                               35% to 20% begins to phase at $15,000.
                                1% for each $2,000
                                 at $43,000 = 20%
                              Children      credit
                                  1            3,000
                             2 or more         6,000

1302     Child tax credit
                             Less than 17
                               2003-10        $1,000

               Phase outs begin at: and reduce $50 for each $1,000 of inc.over
                             Single        MFJ          MFS          HH

                                 75,000      110,000        55,000        75,000
         portion of credit may be refundable

1303     American Opportunity Tax Credit            (Modified Hope Credit)
         2009 & 2010      $2,500/student!!          100% of first $2,000 plus 25% of next $2,000
                          Each of first four years of post secondary edu.
                          Must take at least 50% load at accredited edu.
                          ONLY if Lifetime is not claimed
                          AND if no Edu IRA funds are used !
                          Student cannot have been convicted of Drug offense
                          Any amount used from EE exclusion reduces amounts applicable to the credit
         Phase outs                       Single        MFJ          MFS          HH
                          starts             80,000     160,000       NA          80,000
                          ends               90,000     180,000       NA          90,000
                                                    523b2a0e-5e0c-40b9-93bd-922bba3edf01.xls                                                pg 6


1303   Lifetime              LIMITED to $2,000 per 1040!!       (College, Graduate,Vocational)
                             ONLY if American Opportunity (Hope) is not claimed
                             AND if no Edu IRA funds are used !
                             Any amount used from EE exclusion reduces amounts applicable to the credit
                             CAN BE Used if only ONE course (no 50% requirement)
                             NO TIME LIMIT

                    1998 20% of first $5,000 up to $1,000                     only on expenses after 6/30/98
                    2003 20% of first $10,000 up to $2,000

            Phase outs begin at: and reduce $10 for each $100 of inc.
            Single          MFJ         MFS          HH
                 50,000 100,000         NA            50,000 starts
                 60,000 200,000         NA            60,000 ends

       CAN'T be claimed if dependent
                         If paid by third party, student is deemed to have paid
                         If student is dependent, parent is deemed to have paid


1082   "Above-the-line" deduction for education expenses
       Deduction in 2008-2009                            4,000
                            Single        MFJ         MFS            HH
       Inc. not exceeding    65,000       130,000            0       65,000

       Deduction in 2008-2009                              2,000
                           Single           MFJ          MFS         HH
       Inc. not exceeding   80,000          160,000            0     80,000

1304   Credit for the Elderly
       See calc - rarely used

       Age 65 or
       permanently disabled

1306   Adoption Credit
       12,150/ child
       12,150/ child w/ special needs ------         Beginning in 2003        credit can be claimed regardless of actual expenses paid or
       under 18                                       incurred in the year adoption becomes final.
       allowed in year finalized - see 1036
       may offset both the regular tax and alternative minimum tax liablilty
             Phase out occurs ratably between below amounts
                              Single        MFJ         MFS            HH

                               182,180      182,180      182,180     182,180 starts
                               222,180      222,180      222,180     222,180 ends


1311   Foreign Tax
        can take as a credit or deduction (sch a)
       Credit is usually better

1379   Gasoline tax credit               see form 4136

1307   Credit for Retirement Savings Contributions
         For contributions to 401k, 457 plan, traditional or Roth IRAs, SEP, SIMPLE, Tax-exempt or public school annuities, or
             voluntary after-tax contributions to a qualified retirement plan.
          Must meet the following requirements:
       1. Must be at least 18 years old at end of tax year
       2. Must not be an eligible dependent of another
       3. Must not be a full-time student for 5 or more months of the calendar year.
       4. AGI cannot exceed the following amounts:
                              Single        MFJ           MFS            HH
                     2007      26,000        53,000         26,000       39,000
                     2008      26,500        53,000         26,500       39,750
                     2009      27,750        55,000         27,750       41,625
                                                  523b2a0e-5e0c-40b9-93bd-922bba3edf01.xls                                        pg 7

1324   First-Time Homebuyer Credit (FTHC)
       First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2008, 2009 or 2010.
       Overview
       - Applies only to homes used as a taxpayer's principal residence
       - Reduces a taxpayer's tax bill or increases the refund, dollar for dollar
       - The credit is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe
          no tax or the credit is more than the tax.
       - No credit is available if the purchase price of a home is more than $800,000.
       - Credit deminishes to zero as modified adjusted gross income exceeds $75,000 ($150,000 joint filers).
       - The credit is 10% of the purchase price, with a maximum of available credit of $8,000 if the home was purchased
           in 2009 ($7,500 in 2008).

       For Members of the Military
          Members of the Armed Forces and certain federal employees serving outside the U. S.
          have an extra year to buy a principal residence in the U. S. and still qualify for the credit. An
          eligible taxpayer must buy or enter into a binding contract to buy a home by April 30, 2011,
          and settle on the purchase by June 30, 2011.




1400 AMT

       see rates on page 1

1425   Items
1430
       Installment sales ENDED 1997 !!
       Itemized ded
          Taxes
           Medical OK but must exceed 10% AMT AGI
           Misc. 2% itemized
           Tax exempt private activity bonds
1435   Incentive stock options
          FMV at date freely transferable - price paid


1700 Capital Gains
       1 year or more
1736      Sales prior to 12/31/07:
                     15% if 25% bracket or more
                       5% if 15% bracket or lower
          Sales after 12/31/07
                     15% if 25% bracket or more
                       0% if 15% bracket or lower

 733   Qualifying dividends received between 1/1/03 and 12/31/10 are now taxed at the reduced capital gains rates (0% and 15%)
       The following types of dividend income are specifically excluded from qualified dividend income:
           Dividends paid from a corporation exempt from tax under Code Secs. 501 and 521.
           Amounts that would be deductible under Code Sec. 591.
           Any dividend described in Code Sec. 404(k).
           Dividends paid under Code Sec. 246(c ) that fail to meet the revised holding period.
           The extent that the taxpayer is under a payment obligation under Code Sec. 246(c ).
       Special rules apply to Sec 306 stock

2396   Small business stock - 50% of gain excluded
        issued after 8/10/93 - Only C corp stock
        held > 5 years

2397   may be rolled over tax FREE if
         other SB stock is purchased w/in 60 days
         Only C corp stock

1705   Residence

       500,000 exclusion for joint  250,000 for single
       owned and occupied 2 of 5 years
       can do every 2 years
       Hardship (change in employment, health, other)
         may prorate $500k based on time (18 mos = $375k)

       Past depreciation (i.e. home office is taxed ... i.e. business % no longer excluded from exclusion if not used as HO for
       2 years before sale)
                                                    523b2a0e-5e0c-40b9-93bd-922bba3edf01.xls                          pg 8



1721     Like Kind Exchanges
            List for exchange -- not sale
            Identify new property w/in 45 days of sale
            Settle w/in 180 days

1736     Depreciation on real estate recaptured at 25% tax rate

1752     Net capital loss limit
                       3,000
              Carry forward - unlimited

1779     Recaptures and 1231

         Depreciation recapture on 1250 capital gain taxed at 25%

         Installment sale of 1245 or accelerated 1250
         100% taxed at time of sale --- NOT over time
                       1245 personal property AND SINGLE PURPOSE HORTICULTURAL FACILITIES -
                             I.E. Mushroom Houses
                       1250 real estate

         1245 recapture 100% ordinary

         1250 ordinary = all accelerated if ACRS
                               = accelerated in excess of SL if MACRS


1967     Bond Discounts and Premiums
1956     MUST be amortized as an adjustment to the basis is required



       IRA's

2168     Regular
         $4000 for 2005 - 2007 $5,000 in 2008 - 2009
             Must be under age 70 1/2
              Spouse w/ No Compensation may use other spouse's comp.
              Spouse who is not an active participant in a plan is now NOT ACTIVE if other spouse is
                           AS LONG as AGI under $156,000 (phase out $156k to $166k)

       New catch-up priovision in law for individuals over 50 years of age…$1000 - 2006 & thereafter

2171             Phase outs (IF Active participant) begin at:
                                Single         MFJ          MFS          HH

                                 55,000       89,000             0       55,000 starts
                                 65,000      109,000        10,000       65,000 ends

2173     Non Deductible Contributions

2177     Distribution Requirements (Regular and Non Ded)
              Age 70
              Age 70 1/2, distribution must commence April 1, calendar year after person turns 70 1/2
              Remember if wait to 70 1/2 must take two that yr (4.1 and 12.31)

2178           NA Anymore -   Be careful with estate plan affects of choosing annual recalc method vs. initial calc

2180     Roth
             2005-2007--> 4,000 (2008+ --> 5,000)
             Age 50+ can make catch-up contributions…..        $1000 - 2007 & 2008
              Not deductible
              Grows tax free
              Taken out tax free
              Can leave in and make contributions to beyond 70 1/2

                 Phase outs begin at: (EVEN IF A PARTICPANT IN A PENSION AT WORK)
                        2009 Single         MFJ        MFS        HH

                                105,000      166,000             0      105,000 starts
                                120,000      176,000        10,000      120,000 ends
                                                    523b2a0e-5e0c-40b9-93bd-922bba3edf01.xls                                                 pg 9


         Roth Rollover

               Phase outs begin at:
                             Single          MFJ           MFS            HH

                               100,000       100,000              0      100,000




 898     Education
         $2,000 - after December 21, 2001
              Not deductible, total contribution to all Educational IRA's cannot exceed $2,000
              Grows tax free
              Taken out tax free
              Can leave in beyond 70 1/2
              Contributions can be made up to 4/15 of following year
              Can be used for Elementary, Secondary, or College education

               Phase outs begin at:
                             Single          MFJ           MFS            HH

                                95,000       190,000        95,000        95,000
                               110,000       220,000       110,000       110,000


 899     Qualified Tuition Programs
             Contributions on behalf of beneficiary are N/D and are subject to transfer tax rules.
             Can apply a special gift tax rule allowing you to claim a gift ratably over a five year period.
              ----enables you to contribute up to $65,000 for 2009 without paying any transfer taxes.
             Distributions are tax free as long as used for qualified expenses after:
              ----2002 for state plans
              ----2004 for private institutions
             Donor can redirect back to self or another child or cousin at any time




       Profit Sharing, Pension, 401K, SIMPLE, SEP
       Contribution limits

2101 Profit Sharing                                        2004          2005         2006         2007        2008      2009      2010
       % of comp                                             100%          100%         100%         100%        100%    100%      100%
       Max Comp                                            205,000       210,000      220,000      225,000     230,000   245,000   245,000
       Max Contribution                                     41,000        42,000       44,000       45,000      46,000    49,000    49,000
       Employee Max 401K Withhold                           13,000        14,000       15,000       15,500      15,500    16,500    16,500
       Catch-up Contributions                                3,000         4,000        5,000        5,000       5,000     5,500     5,500
     Pension Plan
       % of comp                                             100%          100%          100%        100%        100%    100%      100%
       Max Comp                                            205,000       210,000      220,000      225,000     230,000   245,000   245,000
       Max Contribution                                     41,000        42,000        44,000      45,000      46,000    49,000    49,000
       Employee Max 401K Withhold                           13,000        14,000        15,000      15,500      15,500    16,500    16,500
       Catch-up Contributions                                3,000         4,000         5,000       5,000       5,000     5,500     5,500
2184 SEP's
       % of comp                                              25%         25%          25%         25%            25%     25%       25%
       Max Comp                                            205,000    210,000      220,000      225,000        230,000   245,000   245,000
       Max Contribution                                     41,000      42,000      44,000       45,000         46,000    49,000    49,000
                                                       ** May also make 401k contributions too.
2185 SIMPLE
       % of comp                                               3%            3%           3%           3%          3%     3%        3%
       Max Comp                                            300,000       333,333      333,333      350,000     350,000   383,333   383,333
       Max Contribution                                      9,000        10,000       10,000       10,500      10,500    11,500    11,500
       Catch-up Contributions                                1,500         2,000        2,500        2,500       2,500     2,500     2,500
                                                     523b2a0e-5e0c-40b9-93bd-922bba3edf01.xls                                     pg 10



       Estate and Gift Taxes:

       Gift Tax:
2905     For gifts of present interest:
         May gift up to $13,000 per year per donee not subject to gift tax
         Spouses can gift up to $26,000 per year per donee not subject to gift tax, if both spouses elect to split their gifts.

2905     Special rules apply to gifts of present interest to a donor's spouse who is not a US citizen.
         An annual exclusion of $133,000 is allowed to a spouse that would otherwise qualify for the marital deduction had
         the spouse been a US citizen.

         Note: The annual exclusion is not allowed for gifts of future interests in property.

 42      Unified Transfer Tax Rate Schedule (Applies to estates and gifts)

                                Taxable    Taxable        Tax on         Tax
                                Amount     Amount         Amount         Rate
                                 Over      Not Over

         for 2008                     0        10,000            0           18%
                                 10,000        20,000        1,800           20%
                                 20,000        40,000        3,800           22%
                                 40,000        60,000        8,200           24%
                                 60,000        80,000       13,000           26%
                                 80,000       100,000       18,200           28%
                                100,000       150,000       23,800           30%
                                150,000       250,000       38,800           32%
                                250,000       500,000       70,800           34%
                                500,000       750,000      155,800           37%
                                750,000     1,000,000      248,300           39%
                              1,000,000     1,250,000      345,800           41%
                              1,250,000     1,500,000      448,300           43%
                              1,500,000     2,000,000      555,800           45%
                              2,000,000                    780,800           45%




         for 2009                     0     2,000,000            0            0%
                              2,000,000                    780,800           45%




2942     Generation-Skipping Transfer Tax

         Applies to transfers to persons two generations or more younger than the transferor.
         Taxed at a flat rate equal to the maximum applicable estate tax rate.
                                   2004         2005        2006          2007        2008            2009
                                    48%         47%          46%          45%         45%             45%


         Lifetime Exemption
                                          Gift Tax    Estate Tax GST Tax
                                   2002     1,000,000 1,000,000 1,100,000
                                   2003     1,000,000 1,000,000 1,120,000
                                   2004     1,000,000 1,500,000 1,500,000
                                   2005     1,000,000 1,500,000 1,500,000
                                   2006     1,000,000 2,000,000 2,000,000
                                   2007     1,000,000 2,000,000 2,000,000
                                   2008     1,000,000 2,000,000 2,000,000
                                   2009     1,000,000 3,500,000 3,500,000
                                   2010     1,000,000 ***N/A     ***N/A

         *** Note: The estate and GST taxes are scheduled to be repealed in 2010 only, unless legislation is enacted otherwise.




         See    www.irs.gov      for more information                              See    www.irs.gov     for more information
                                            PELLINI GOLD CORDES, LLC
                                                CERTIFIED PUBLIC ACCOUNTANTS
                                                   11 SOUTH CHURCH STREET
                                                 WEST CHESTER, PA 19382-3220
                   JAMES J. PELLINI, C.P.A., C.V.A.                                       DAVID PELLINI (1953-1992)
                   DAVID G. GOLD, C.P.A.                                                          --------------
                   JOHN F. CORDES, C.P.A.                                                           696-1177
                        --------------                                                           FAX 344-7144
                   JAMES C. PELLINI, P.A.                                                       AREA CODE 610
                   JUDITH B. VIRGILIO, C.P.A.                                             WEB SITE: www.pellinigold.com
                   WILLIAM D. BRADY, JR, C.P.A., C.V.A.

Summary of key tax law changes: Please check out our website for ongoing tax updates as part of our tax newsletter.
Prepared by GG, 12/1/2009

                                                2005          2006           2007             2008           2009           2010          2011
Income Tax Rates
       Single         Married
    over 357,700    over 357,700                35.00%         35.00%         35.00%           35.00%        35.00%          35.00% 39.60%
 164,550-357,700 200,300-357,700                33.00%         33.00%         33.00%           33.00%        33.00%          33.00% 36.00%
  78,850-164,550 131,450-200,300                28.00%         28.00%         28.00%           28.00%        28.00%          28.00% 31.00%
   32,550-78,850  65,100-131,450                25.00%         25.00%         25.00%           25.00%        25.00%          25.00% 28.00%
    8,025-32,550   16,050-65,100                15.00%         15.00%         15.00%           15.00%        15.00%          15.00% 15.00%
       0-8,025        0-16,050                  10.00%         10.00%         10.00%           10.00%        10.00%          10.00% 15.00%

Expansion of 10% Bracket
Taxable income limit - MFJ                      14,600         15,100         15,650           16,050     Adjusted for inflation        NA
Taxable income limit - all
 others                                          7,300          7,550          7,825            8,025     Adjusted for inflation        NA

Capital Gains rates
Max CG rate                                           15%         15%            15%                15%         20%            20%           20%
CG rate for 10 & 15%
 brackets                                              5%             5%             5%              0%             0%             0%        0%

Dividends
Max dividends rate                        Ord Inc           Ord Inc        Ord Inc        Ord Inc         Ord Inc        Ord Inc        Ord Inc
Dividends rate for 10 & 15%
 brackets                                 Ord Inc           Ord Inc        Ord Inc        Ord Inc         Ord Inc        Ord Inc        Ord Inc

AMT Exemption
Single                                           40,250        42,500         44,350            46,200 Adjusted for inflation
Married                                          58,000        62,500         66,250            69,950 Adjusted for inflation

IRA Contribution Limits (Regular and Roth IRAs combined per individual)
Regular Contributions                      4,000    4,000       4,000                           5,000         5,000
Catch-up Contributions                       500    1,000       1,000                           1,000         1,000

Pension Provisions
401K Contributions                              14,000         15,000         15,500           15,500        16,500
Pension Maximums                                42,000         44,000         45,000           46,000        49,000
401k Catch-up Contributions                      4,000          5,000          5,000            5,000         5,500
Simple Plans                                    10,000         10,000         10,500           10,500        11,500
Simple Catch-up Contributions                    2,000          2,500          2,500            2,500         2,500

Child Tax Credit
Per qualifying child                             1,000          1,000          1,000            1,000         1,000




                                                                               Page 11
                                           PELLINI GOLD CORDES, LLC
                                               CERTIFIED PUBLIC ACCOUNTANTS
                                                  11 SOUTH CHURCH STREET
                                                WEST CHESTER, PA 19382-3220
                  JAMES J. PELLINI, C.P.A., C.V.A.                                   DAVID PELLINI (1953-1992)
                  DAVID G. GOLD, C.P.A.                                                      --------------
                  JOHN F. CORDES, C.P.A.                                                       696-1177
                       --------------                                                       FAX 344-7144
                  JAMES C. PELLINI, P.A.                                                   AREA CODE 610
                  JUDITH B. VIRGILIO, C.P.A.                                         WEB SITE: www.pellinigold.com
                  WILLIAM D. BRADY, JR, C.P.A., C.V.A.



                                               2005          2006          2007          2008            2009          2010     2011

Estate Tax
Maximum Tax Rate                                47.00%    46.00%    45.00%                 45.00%      45.00% Repealed
Exemption Amount                              1,500,000 2,000,000 2,000,000              2,000,000   3,500,000 Repealed

Gift Tax
Maximum Tax Rate                                47.00%    46.00%    45.00%                 45.00%      45.00%        35.00%
Exemption Amount                              1,000,000 1,000,000 1,000,000              1,000,000   1,000,000     1,000,000

Estate and Trust
 Income Tax Rates
                       over 10,700              35.00%        35.00%        35.00%         35.00%        35.00%        35.00%   39.60%
                      7,850-10,700              33.00%        33.00%        33.00%         33.00%        33.00%        33.00%   36.00%
                       5,150-7,850              28.00%        28.00%        28.00%         28.00%        28.00%        28.00%   31.00%
                       2,200-5,150              25.00%        25.00%        25.00%         25.00%        25.00%        25.00%   28.00%
                         0-2,200                15.00%        15.00%        15.00%         15.00%        15.00%        15.00%   15.00%

Depreciation Provisions
 Sec 179 expense
   Deduction Amount                           105,000        108,000       125,000        250,000        250,000       134,000 25,000
   Investment limitation                      420,000        430,000       500,000        800,000        800,000       530,000 200,000
   SUV deduction




 Bonus Depreciation                            NA             NA            NA            NA             NA            NA

 Leasehold Improvements




Social Security Tax Base                        90,000        94,200        97,500        102,000        106,800

Standard Mileage Rates                9/1/05-12/31/05
  Business                                $    0.485 $         0.445   $     0.485 $0.505+.585       $     0.55    $     0.50
  Charitable                              $     0.14 $          0.14   $      0.14 $      0.14       $     0.14    $     0.14
  Medical/Moving                          $     0.15 $          0.18   $      0.18 $      0.27       $     0.24    $    0.165

Health Savings Accounts
                Single                    $      2,600   $     2,700   $     2,850   $      2,900    $    3,000
                Family                    $      5,150   $     5,450   $     5,650   $      5,800    $    5,950

Cafeteria Plans
                  Flexible spending accounts
                  Health premium only plans




                                                                             Page 12

				
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