Mileage Rates Decrease for 2009

With the recent decline of gas prices, the IRS has announced decreased mileage rates for 2009. Beginning January 1, 2009, the standard mileage rates for trade or business mileage will be 55 cents per mile, down from 58.5 during the second half of 2008. Rates also decreased from 27 cents per mile to 24 cents for medical or moving purposes, while the charitable organization rate of 14 cents per mile continues to remain the same.

Suspended RMDs for 2009

2009 will bring about some tax relief for those who are age 70.5 and older who are required to take money out of retirement accounts. On December 12, Congress approved legislation that includes a one-year suspension of the required minimum distributions for 2009 for taxpayers who are 70.5 and older. Requirements for 2008 remain unchanged. The legislation, H.R. 7327, the Worker, Retiree, and Employer Recovery Act of 2008 <http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h7327eh.txt.pdf> , passed both the House and Senate and is awaiting signature by the President.

Pension Limits Increase for 2009

The economy may be down, but the limits on how much you can fund your company based retirement accounts have increased for 2009. This may provide an opportunity to capture more value in stocks based on the current market conditions, if cash flow permits. The Internal Revenue Service has recently announced cost-of-living adjustments applicable to dollar limitations for pension plans and other items for tax year 2009. Starting January 1, 2009, the limitation on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) is increased from $185,000 to $195,000. The total limitation for defined contribution plans, such as 401(k) plans, is increased from $46,000 to $49,000. The annual payroll deferral amount for 401(k) plans has also increased from $15,500 to $16,500 starting in 2009. The catch - up contributions for those who are 50 and over have also increased starting in 2009. The 401(k) catch - up has increased from $5,000 to $5,500 and the Simple IRA plan catch up has remained the same for 2009 at $2,500.

Emory Promoted

Valley Oak Financial is proud to announce the promotion of Thomasina Emory to Director of Operations. She will have the primary responsibility of managing the firm's daily operations. Emory was hired in 2006 as the office manager. She holds an MBA in Business Administration from Cornerstone University. She currently resides in Kalamazoo with her three daughters.

Burke Hired

Valley Oak Financial is pleased to welcome Ashlyn D. Burke, as an administrative assistant. Burke, the daughter of Karen Burke, of Portage is currently completing her Bachelor's degree in Accountancy from Western Michigan University, with an anticipated graduation date of December 2008. Burke plans on pursuing her Master of Science in Accountancy degree from WMU in the summer of 2009.