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Selecting an estate planning attorney for your legal case is a very important decision. Please enter a zip code to find an estate planning attorney that serves your area:
Increased Contribution Limit for Traditional IRAs and Roth IRAs
The new law gradually increases the amount you can contribute each year
to a traditional IRA or Roth IRA** from $2,000 per person to $5,000 per
person. The increase is phased in over a seven-year period starting in
2002. As a result, a married couple may eventually contribute up to
$10,000 a year to a traditional and/or Roth IRA. There is, however, a
limit of $5,000 per IRA.
Contact the nearest Estate Planning Lawyer and obtain a free case evaluation.
Planning Considerations
The increase offers an opportunity to save more money for retirement.
You can make contributions to a traditional IRA*** (and possibly to a
Roth IRA) even if you put money into an employer-sponsored retirement
plan.
Catch-up Contributions for Traditional IRAs and Roth IRAs
The new law allows investors age 50 and over to contribute more to an
IRA. With these "catch-up" contributions, investors may be able to put
up to $6,000 a year to an IRA when the provisions are fully phased in.
Starting in 2002, those 50 and over can contribute an extra $500 per year to a traditional IRA and /or Roth IRA. The catch-up contribution will remain at $500 through 2005, and will then increase to $1,000 for 2006 (and later years). For those investors 50 and over who plan to retire in the near future, this provision provides an added opportunity to build up funds for it. Again, investors can make catch-up contributions (and IRA contributions) in addition to employer-sponsored retirement plans.***
IRA Planning Consideration
The expanded rollover rules may provide you with more control over
where you want your retirement plan assets held and how you want them
to be invested.
How it affects YOU
It is important to find out exactly how these changes affect you and
your family. Speak to a financial advisor and your personal tax or
legal advisors to have a personalized assessment done.
Contact the nearest Estate Planning Lawyer and obtain a free case evaluation.
Content Related to Topic
An Estate Planner can also assist all other possible estate planning law concerns.
A Will, is sometimes called a "Last Will and Testament". Used to transfer property you hold in your name to the person(s) and/or organization(s) you want to have it. A Will also typically names someone you select to be your Personal Representative (or "Executor") to carry out your instructions and names a Guardian if you have minor children. A Will only becomes effective upon your death, and after it is admitted to probate.