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Financial Planning / Tax Strategies
|Subject: Re: New Tax Law Strategies||Date: 8/26/2001 4:49 PM|
|Author: taxprof||Number: 53579 of 125707|
New changes that go away after 2010, so act now
1. 401k participation:
After 2001, the maximum amount that can be contributed to a 401k will increase. So amount of 401k contributions should increase.
special rule If you are over 50 years old (not sure if exactly 50), then you have a special catch up provision. That means that your maximum 401k contribution is more than for those under 50.
After 2001, the maximum amount you can contribute to an IRA will increase. You should put in the maximum amount.
special rule If you are over 50 years old (not sure if exactly 50), then you have a special catch up provision. That means that your maximum IRA contribution is more than for those under 50.
Because of these 2 new changes, I plan on increasing the amount I contribute to my retirement. Because of the effect of compound interest, even if Congress does nothing, and these laws expire in 2010, I will still be ahead of the game.
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