This is the second article in a series about how the new federal tax law can save you money. After launching the series with a look at investing for education, today we address how changes in the law affect retirement plans. Tomorrow's article will be on estate planning.
| Taxes in 2002: Investing for Education |
| Taxes in 2002: Estate Planning |
| Stashing More of Your Cash In '02, you can increase your IRA contribution by 50% over last year |
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| When | Regular Contribution for Everyone | Catch-Up Contribution for Those Age 50 or Over | Total Possible Contribution for Those Age 50 or Over |
| 2001 | $2,000 | $0 | $2,000 |
| 2002-2004 | 3,000 | 500 | 3,500 |
| 2005 | 4,000 | 500 | 4,500 |
| 2006-2007 | 4,000 | 1,000 | 5,000 |
| 2008 | 5,000 | 1,000 | 6,000 |
| Source: Vanguard. | |||
| Today's Sacrifice, Tomorrow's Gain Save extra by shifting more tax-free dollars into your retirement plan at work |
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| When | Regular Contribution for Everyone | Catch-Up Contribution for Those Age 50 or Over | Total Possible Contribution for Those Age 50 or Over |
| 2001 | $10,500 | $0 | $10,500 |
| 2002 | 11,000 | 1,000 | 12,000 |
| 2003 | 12,000 | 2,000 | 14,000 |
| 2004 | 13,000 | 3,000 | 16,000 |
| 2005 | 14,000 | 4,000 | 18,000 |
| 2006 | 15,000 | 5,000 | 20,000 |
| Source: Vanguard. | |||
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