IRA Tax Law Changes

Experts suggest that we will need between 70 and 90 percent of our current income, adjusted for inflation, to maintain the same lifestyle in retirement. Presently, Social Security provides approximately 39% of a retiree's source of income. Contributing to a Traditional or Roth IRA is one way that you can put money aside and save enough money to live comfortably in retirement.

ANNUAL IRA CONTRIBUTION LIMITS - TRADITIONAL AND ROTH IRA

IRA Contribution Limits

Year.......AGE 49 & BELOW.......AGE 50 & ABOVE

2009................$5,000.......................$6,000

2010........Indexed to Inflation........Indexed to Inflation

Coverdell Educational Savings Accounts (formerly called an educational IRA) is one way to save for college...

The contribution limit for each child that you establish a Coverdell Education Savings Account is $2,000. The contributions are not tax deductible, but will grow tax-free until the distributions are taken from the account. The phase out income limit for making a maximum contribution for married couples filing a joint tax return is $190,000 - $220,000 and $95,000 - $110,000 for single filers.