Taxes in 2002: Retirement Plans

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

Like other instruments of unsung brilliance -- folding chairs, swimming goggles, tomato paste in tubes -- retirement plans dazzle few people at first encounter. But their value becomes increasingly apparent with the passage of time.

As part of our three-part series on taxes, today we focus on how changes to the federal law benefit people investing for retirement, with a primer on how two of the most popular investment plans work.

Starting this year, you can contribute more to your IRA. In 2002, investors can put $3,000 in a Roth or traditional IRA, up from last year's max of $2,000. People age 50 and over can add $500 on top of that, for a total of $3,500. ...