...that the Economic Growth & Tax Relief Reconciliation Act of 2001 has provisions
which allow workers age 50 and older to make "catch-up" contributions to individual
retirement accounts (IRAs)?
If an individual has attained the age of 50 before the close of the taxable year and meets
the other eligibility requirements for the traditional or Roth IRA, the annual IRA
contribution limit for that individual will increase by $500 starting for tax year
2002 and will increase to $1,000 starting for tax year 2006 and beyond.
The catch-up provision also applies to elective deferrals for the Savings Incentive
Match Plan for Employees (SIMPLE) IRA. If an individual participates in a
SIMPLE IRA and attains age 50 or older by the end of the taxable year, the plan participant
may make catch-up elective deferrals up to an additional $500 starting in
2002. The catch-up limit will cap in 2006 at $2,500.
...the deadline to establish a SIMPLE IRA retirement plan for your business for tax
year 2001 is October 1st. Starting your retirement plan now will give you a
head start in preparation for the increased SIMPLE IRA contribution limits starting
in 2002. To find out more, visit our website at usfunds.com or call 1-800-US-FUNDS.
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Investment Professionals 