Take Advantage of Tax Laws
Tax laws allow people to save more for retirement tax efficiently. Limits on the annual contributions you may make to an IRA generally increase with time. 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 increased over the years:
|Maximum Contribution Limits|
|$5,500||2013 - 2014|
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. 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.
|$1,000||2013 - 2014|