Are there any other requirements to fulfill to contribute the additional $500 other than the age requirement?

I am correct in understanding that the total IRA contribution
for those 50+ years in 2002 will then be $3500?


This is what CCH (Commerce Clearing House) relates in their explanation of the new law. You can read it at:
http://www.tax.cch.com/free_tools/cch-tax-briefing-05-29-01.htm

IRA contribution limits. The contribution limits for both traditional and Roth IRAs will rise from the current $2,000 annual cap to $5,000 ($3,000 for 2002- 2004; $4,000 for 2005-2007; and $5,000 for 2008 and thereafter ) with annual adjustments for inflation after 2008.

Catch-up contributions. Taxpayers who are age 50 and above will be permitted to contribute "catchups" to their IRAs. They can contribute to an IRA an additional $500 in 2002 - 2005; $1,000 in 2006 and all years thereafter. These "catchup" payments can either be deductible or made to a Roth IRA, if the base-line AGI limits are met for regular contributions for the year.

............
Don't know if that answers your question, tho.

Gail