More Bucks For IRAs and 401(k) Plans
by Charles B. Carlson, CFA
Dow Theory Forecasts
Thanks, Uncle Sam.
Retirement investors, listen up. Good things happen to you in 2002.
Indeed, in 2002, the IRA contribution limit increases to $3000.
And for taxpayers age 50 and older, a "catch-up" provision in the tax law allows them to contribute an additional $500.
Thus, if you are 50 years or older, you can contribute a maximum $3500 in 2002 to a traditional or Roth IRA.
For qualified retirement plans (401(k) and 403(b) plans), the contribution ceiling increases to $11,000.
And taxpayers age 50 and older may also make an additional "catch-up" contribution of a maximum $1000.
Thus, if you are 50 years or older, you may be able to contribute up to $12,000 in your 401(k) plan in 2002.




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