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IRA Contributions and the 2001 Tax Act

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Question or Topic 

The Question: How much may I contribute to an IRA under the tax act of 2001?

Objectives

Gain insight about the new IRA provisions for 2001 and later.

 

 

The Answer

   

How Much Can Be Added for 2001

MAXIMUM IRA CONTRIBUTION AMOUNT

The maximum amount that can be contributed to an IRA on behalf of any individual for a taxable year is the maximum contribution amount.  The maximum contribution amount is as follows:

New IRA Contribution Phase In Rules

 

Tax Years Beginning

Maximum Contribution

Before 2002

2000

Starting 2002 – through 2004

3000

Starting 2005 – through 2007

4000

Starting 2008 and continuing thereafter

5000

Individuals who have reached age 50 may make additional catch-up IRA contributions. Under this catch-up rule, the maximum contribution amount for an individual who has attained age 50 before the end of the taxable year is increased by $500 for 2002 through 2005, and by $1,000 for 2006 and thereafter.

Related Articles

  1. IRA Contribution Limits

  2. Retirement Plan Guide 2001 (pdf)

  3. Roth and Required Distributions

  4. Roth and the Income Limits

  5. To Roth or Not to Roth

  6. Tax Act 2001 Retirement Plan Contributions

  7. IRA Blunders

  8. IRA - Who may have one?

For other related documents - see the table of contents "Retirement and Plans"

 

 

Solutions

 

 

Solutions are dependent upon facts & circumstances, law and the objectives.  These elements vary from one time to another, from one circumstance to another and from person or entity to another.

Kit to Prepare for Your Adviser

IRA Contribution Limits
Year -> 2001 2002 2003 2004 2005 2006 2007 2008
Amount 2000 3000 3000 3000 4000 4000 4000 5000
Catch up Amount 0 500 500 500 500 1000 1000 1000
The "Catch UP" Amount is available to those who have attained age 50 BEFORE the end of the taxable year.

IRA Contribution Limits

 

 

 

 

 

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