Tax Changes for 2006 (Pt 2)
One of the most important tax changes for 2006 is the increase in the contribution limit for Roth and traditional IRAs rises for those taxpayers who are aged 50 or more. The increase is more than 10% from $4,500 to $5,000. But if you’re under age 50, sorry, the contribution limits remain the same.
Even more impressive, phase-outs for IRA deductions also rise about 10%, beginning now at $75,000 if married filing jointly. There’s no change for single persons or heads of households (still $50,000) and $0 for a married person filing a separately.
Contribution limits for employees who participate in 401(k), 403(b) and other retirement plans have risen to $15,000. For SIMPLE plans, the limit remains at $10,000.
Tags: 401(k), IRA, retirement, Roth-IRARelated Stories
POSTED IN: individual, retirement & pension
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