Since 2002, federal standards for individual retirement accounts have seen a number of important changes, most notably in the area of the maximum allowable contributions.
These changes have resulted in the limits being gradually raised from the old $2,000 maximum contribution prior to 2002 to the $4,000 limit that took effect in 2007.
Even the 2007 IRA contribution limits, however, were judged to be too low, and new legislation created even newer standards that now govern what you may contribute to your traditional and Roth IRA accounts.
You should always know what the current limits are to ensure that you are in compliance with the rules for your account.
New increases With the increase from the 2007 IRA contribution limits, individuals can now contribute as much as five thousand dollars to their IRA accounts.
This, of course, is a cumulative cap on your accounts, which means that even if you own five IRA accounts you can still only contribute a total of five thousand dollars.
This is true whether you contribute five thousand dollars to one account or one thousand dollars to five accounts.
The only exception to this increase from the 2007 IRA contribution limits applies to anyone who is turning fifty in the current year.
Those older individuals are also entitled to contribute an additional one thousand dollars so that they may catch up on contribution payments they might have missed from not beginning their account activity earlier in life.
More opportunities than ever The benefits to the changes to the 2007 IRA contribution limits are easy to see.
As the limits continue to rise to match inflation and the cost of living, individuals who can afford to do so will find that they have more opportunities than ever to concentrate on adequately funding their future retirement needs.
With the new limits, and future anticipated increases, even those who have gotten a late start in planning for retirement will find that they are better able to begin construction of that all-important nest egg.
How far will they go? One thing to keep in mind is that there is some doubt as to whether these increases from the 2007 IRA contribution caps can keep rising indefinitely.
The fact is that, if history is any guide, government's desire for increased revenue will at some point conflict with the benefits of tax deferred savings.
There are already more than three trillion dollars sitting in American taxpayer IRA accounts, and some rule makers would definitely love to get access to that money through the taxation process.
For that reason, anyone who wants to take advantage of the limits that replaced the 2007 IRA contribution rules should probably act fast.
When it comes to tax rates and tax laws the rules change each and every year.
That means that taxpayers who want to take advantage of beneficial rules have to act as quickly as possible while the opportunity is still there.
If you feel that you might be someone who could benefit from the changes to the old 2007 IRA contribution limits, you should look into an IRA account soon.
These changes have resulted in the limits being gradually raised from the old $2,000 maximum contribution prior to 2002 to the $4,000 limit that took effect in 2007.
Even the 2007 IRA contribution limits, however, were judged to be too low, and new legislation created even newer standards that now govern what you may contribute to your traditional and Roth IRA accounts.
You should always know what the current limits are to ensure that you are in compliance with the rules for your account.
New increases With the increase from the 2007 IRA contribution limits, individuals can now contribute as much as five thousand dollars to their IRA accounts.
This, of course, is a cumulative cap on your accounts, which means that even if you own five IRA accounts you can still only contribute a total of five thousand dollars.
This is true whether you contribute five thousand dollars to one account or one thousand dollars to five accounts.
The only exception to this increase from the 2007 IRA contribution limits applies to anyone who is turning fifty in the current year.
Those older individuals are also entitled to contribute an additional one thousand dollars so that they may catch up on contribution payments they might have missed from not beginning their account activity earlier in life.
More opportunities than ever The benefits to the changes to the 2007 IRA contribution limits are easy to see.
As the limits continue to rise to match inflation and the cost of living, individuals who can afford to do so will find that they have more opportunities than ever to concentrate on adequately funding their future retirement needs.
With the new limits, and future anticipated increases, even those who have gotten a late start in planning for retirement will find that they are better able to begin construction of that all-important nest egg.
How far will they go? One thing to keep in mind is that there is some doubt as to whether these increases from the 2007 IRA contribution caps can keep rising indefinitely.
The fact is that, if history is any guide, government's desire for increased revenue will at some point conflict with the benefits of tax deferred savings.
There are already more than three trillion dollars sitting in American taxpayer IRA accounts, and some rule makers would definitely love to get access to that money through the taxation process.
For that reason, anyone who wants to take advantage of the limits that replaced the 2007 IRA contribution rules should probably act fast.
When it comes to tax rates and tax laws the rules change each and every year.
That means that taxpayers who want to take advantage of beneficial rules have to act as quickly as possible while the opportunity is still there.
If you feel that you might be someone who could benefit from the changes to the old 2007 IRA contribution limits, you should look into an IRA account soon.
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