Here you will find some of the common questions that we receive throughout the year. We will continue to add questions and answers and we encourage you to provide suggestions of topics you would like to see covered.

Questions: What is the federal standard mileage rates? How much can I contribute to my IRA for 2010 and 2011? My employer has a SIMPLE IRA how much can I contribute? My employer has a 401K plan how much can I contribute? If I take Social Security before my full retirement age how much can I earn each year? How much money can I give my kids each year? I have a 401K with old employer what are my options? Answers: What is the federal standard mileage rates? The IRS has announced the optional standard mileage rates for 2011 for use in computing the deductible costs of operating a passenger automobile for business, charitable, medical, or moving expense purposes. Effective January 1 through June 30 of 2011, the standard mileage rates are as follows: Business use of auto: 51 cents per mile may be deducted (up from 50 cents per mile in 2010) if an auto is used for business purposes Charitable use of auto: 14 cents per mile may be deducted (remaining unchanged) if an auto is used to provide services to a charitable organization Medical use of auto: 19 cents per mile may be deducted (up from 16.5 cents per mile in 2010) if an auto is used to obtain medical care (or for other deductible medical reasons) Moving expense deduction: 19 cents per mile may be deducted (up from 16.5 cents per mile in 2010) if an auto is used to effect a work-related move to a new home Effective July 1 through December 31, of 2011, the standard mileage rates are as follows: Business use of auto: 55.5 cents per mile may be deducted if an auto is used for business purposes Charitable use of auto: 14 cents per mile may be deducted (remaining unchanged) if an auto is used to provide services to a charitable organization Medical use of auto: 23.5 cents per mile may be deducted if an auto is used to obtain medical care (or for other deductible medical reasons) Moving expense deduction: 23.5 cents per mile may be deducted if an auto is used to effect a work-related move to a new home. IR-2010-119 contains additional details Top How much can I contribute to my IRA for 2010 and 2011? For both 2010 and 2011 the contribution limit is $5,000 plus $1,000 if you are age 50 or over. In order to contribute to a Roth or Traditional IRA you will have to have earned income and your contribution can not exceed the earned income for the year. Contributions to traditional IRAs can no longer be made when you turn 70 ½. Other restrictions apply based on your income and participation in employer plans. Top My employer has a SIMPLE IRA how much can I contribute? For both 2010 and 2011 you can contribute up to $11,500 and an additional $2,500 if you are age 50 or older. Please see you employer of any additional restrictions. Top My employer has a 401K plan how much can I contribute? For both 2010 and 2011 you can contribute $16,500 and an additional $5,500 if you are age 50 or older. Please see your employer for additional restrictions. Top If I take Social Security before my full retirement age how much can I earn each year? You can earn up to $14,160 in 2010 and there are special rules for the year that you start taking Social Security. Top How much money can I give my kids each year? There is a $13,000 annual gift exclusion for present interest gifts made during 2010. You cannot deduct gifts made to your children from your taxable income. If you meet the annual exclusion then you do not have to file a gift tax return. Top I have a 401K with old employer what are my options? There are five options for your 401K when you leave an employer. 1. Leave the money where it is. 2. Move the account to a new employer 401K. If they allow transfers in. 3. Take the money out and pay taxes and maybe penalties. 4. Do a direct non-taxable rollover to a traditional IRA. 5. Do a direct rollover to a ROTH IRA and pay the taxes on the amount rolled over. Top