The Cost-of-Living dollar limits for Tax year 2004

IRA Contribution Limit $3,000

50 & Over Catch-up IRA Contribution $500

401(k) deferral limit $13,000

50 & Over Catch-up 401(k) Contribution $3,000

Annual compensation limit $205,000

Defined contribution IRC Sec 415 limit $41,000

Compensation limit for SEP eligibility $450

Deferral Limit for SIMPLE $9,000

IRC Sec 179 $102,000

Unified Credit Exclusion $1,500,000 in 2004

Self-employed health insurance AGI deduction 100%

Other

Business mileage rate $0.375/mile

Medical mileage rate $0.14/mile

Charitable mileage rate $0.14/mile

Social Security

Wage Base for 2003 is $87,900

Retirees under 65 may earn up to $11,640 ($970 a month). For each $2 earned over the amount for the year, the retiree loses $1 in benefits. Retirees turning 65 in 2004 can earn up $31,080 in the year without losing benefits, counting only earnings before the month they turn 65. For each $3 earned over this limit, the retiree loses $1 in benefits. No limit if 65 or over, effective January 1, 2000.

As you work and pay Social Security taxes, you earn "Credits", up to a maximum of 4 for each year. The amount of earnings it takes to earn a credit changes each year. In 2004, you earn one credit for each $900 of your earnings. So if you have earned at least $3,600 during the year, you get a maximum 4 credits.