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| Still considered a good tax-deferred option for most people, since you pay no taxes on income earned until the money is withdrawn – which is usually not until retirement. |
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The annual contribution limit increases to $3,000 in 2002, $4,000 in 2005 and $5,000 in 2008. After 2008, the contribution limit will be adjusted annually for inflation in $500 increments. The annual limit applies to any combination of IRA plans other than the ESA. Contributions are fully tax deductible if you are not an active participant in an employer retirement plan. Investments grow on a tax-deferred basis. Earnings are taxed only upon withdrawal.
Making-Up For Lost Making-Up For Lost Time
Catch-up contributions—For taxable years beginning in 2002, individuals who have reached age 50 by the end of the year will be able to make additional catch-up contributions of $500 per year to their traditional or Roth IRA. For taxable years beginning in 2006, the additional catchup amount increases to $1,000.
Contact your banker today to learn more about today’s IRA!
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