Recent changes in tax laws are allowing people to save more for retirement. Limits on the annual contributions you may make to an IRA are increasing. There are additional opportunities for people age 50 or older to "catch up" on their retirement savings. Increased Contribution Limits
Prior to 2002, the maximum annual limit you could contribute to an IRA was $2,000. This will increase over the next several years:
Maximum Contribution Limits
$3,000
2002 to 2004
$4,000
2005 to 2007
$5,000
2008 to 2010
Catch-Up Contribution Limits
For people age 50 or older, retirement is becoming a close reality, and some may be behind in building their retirement nest egg.New tax laws make it possible for people in this age group to make catch-up contributions in addition to the annual maximum, helping them reach their goals a little faster.
