IRA Contribution Limits for 2006
If you have an IRA, then good for you! If you don't, then you should reconsider.
If you are a participant in your employer's plan, then consider a ROTH.
The maximum contribution one can make to their IRA in 2006 will remain the same
as 2005, $4000. However, the catch-up amount allowed for those of us past
the 50-year mark is increaseing from $500 to $1000.
You are eligible to make the additional catch-up contributions beginning the
year in which you turn 50 years old. In other words, anyone born in 1956 or
earlier make take advantage of this extra contribution limit.
Back to the ROTH topic -- if you are covered by a retirement program then
you may be limited as to deductible contributions you can make to your IRA.
In years past, if your income reached that level, your recourse was to make
non-deductible contributions to your IRA. But now you can choose a
ROTH IRA
instead, with considerable better tax benefits. There is separate
information on this site to explain
ROTH IRAs.
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