401(k) / 403(b) retirement limits are $15,000, plus $5,000 for people over 49.

IRA contribution limits are $4,000, plus $1,000 for over 49.

Estate tax exemption is $2,000,000 (up from $1,500,000 in 2005).

Annual gift exclusion is $12,000 (up from $11,000 in 2005).

New in 2004, Health Savings Accounts offer a lower-cost approach with tax benefits for individuals under age 65 who are not covered by employer health plans.

It takes a little time and understanding to set up, but is worth the effort.    More details...

New in 2006:  Roth 401(k) plans.

Employers may offer a Roth option in their 401(k) plan.  Although contributions are after-tax, the future distributions are not taxed.

And, unlike a 401(k) or other traditional deductible retirement plan, there are no required minimum distributions.  You can leave the money in the account for your lifetime and your spouse's lifetime.

If you do not need the funds, your beneficiary will receive the account, free from income tax.  More details...

Buyers of hybrid cars are eligible for an income tax credit up to $3,400 in 2006.  The amount of the credit depends on the fuel efficiency and weight of the purchased car.

The credit will be phased out in the second calendar quarter following the quarter in which a particular manufacturer sells its 60,000th of that particular hybrid.  (This provision belongs in the "Believe It or Not" sidebar of this newsletter). 

A 10% credit is available when buying qualifying energy efficiency home improvements, including insulation, windows, and doors, roofs, and heating and cooling equipment.  The maximum credit allowable is $500.

A credit of up to $2,000 is available for each item of qualified photovoltaic or solar equipment, for purposes other than heating pools and hot tubs. 

For more details, and additional business tax credits for energy efficiency go to the U.S. Department of Energy site for details. 

A payment rate of 1.47% offered to refinance an existing mortgage with World Savings.  Sound too good to be true?  I thought so too, and called for details...

A check for $9.95 from Citibank.  Depositing the check enrolls you in a "Credit Monitoring Program" for $9.95 per month, which will automatically be charged to your Citi Visa.  (Credit reports can be obtained for free from the three major credit agencies.)

An email from taxrefunds@irs.gov, directing the recipient to a site that requests Social Security and credit card information, which is then used for identity theft.  (At least this one is from real crooks, not Citibank and World Savings.)

An email from PayPal, with the subject line:"Your payment has been sent", stating that you paid OmegaMove for a $380 watch, using your PayPayl account.  The watch is about to be shipped to someone you don't know.  To dispute the transaction, the email directs you to a PayPal look-alike site...

If you want to make a deposit to your Fidelity account, please send it directly to Fidelity, not to our office.  This will reduce the potential for lost checks.

Preprinted deposit envelopes are available upon request.

We can alert you when your check is received by Fidelity.

Complete instructions are posted on our website