The More Valuable and Versatile IRA (06/19/01) Vol. 24, No. 6 p.3B; Martin, Ray

Changes in the tax code hold major implications for Individual Retirement Accounts as retirement savings options are expanded. In addition to expanding contribution limits, the adjusted tax rules will allow people to make payroll deduction contributions to an IRA as well as to their 401(k), and afford greater flexibility and choice for rolling over assets when changing jobs. Furthermore, individuals 50 and over may contribute an extra $500 to their IRA in 2002 through 2005, plus another $1,000 in 2006 and every year thereafter. These expanded contributions also apply to Roth IRAs. The modifications should help put more distance between IRAs and other defined contribution retirement plans such as 401(k)s, 403(b)s, and 457s.

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