Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.
Q. Is the $9,500 limit on a 401(k) tax-free contribution for each spouse or both together?
A. The 401(k) tax-free contribution limit of $9,500 is provided on an employee by employee basis. Therefore, each employed spouse could contribute up to $9,500 to his or her 401(k) plan. Of course, there are additional complex limitations in calculating this amount. You should discuss this with your employer, tax adviser or plan sponsor.
Q. There is no pension exclusion form in the Maryland tax form booklet that I just received. Do we not have to use a form and attach it to our return?
A. No, you no longer have to file a pension exclusion form. Fill out the worksheet in your Maryland tax form booklet (See instruction 13 on page 5) to calculate your pension exclusion. Maryland discontinued the Form 502PE Pension Exchange.
The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.
To ask a tax question, call Sundial at (410) 783-1800. Call 268-7736 in Anne Arundel County, 836-5028 in Harford County and 848-0338 in Carroll County. Using a Touch-Tone phone, punch in the four-digit code 6225 after you hear the greeting.
Readers also can e-mail questions through The Sun's Web site -- www.sunspot.net.
Selected questions will be answered in the Business section. No questions will be answered by phone.
Pub Date: 2/21/97