Additional Retirement Plan Contributions
The 2001 tax relief legislation expanded opportunities for retirement savings:

• The maximum IRA contribution is $3,000 in 2002 - 2004, $4,000 in 2005 - 2007, and $5,000 in 2008 and later years.

• Taxpayers age 50 and older can make an additional "catch-up" annual IRA contribution of $500 in 2002 - 2005 and $1,000 in 2006 and later years.

• The maximum annual 401(k) contribution increased to $11,000 in 2002, and will go up $1,000 each year after that until it reaches $15,000 in 2006.

• The maximum annual contribution to a defined benefit plan will increased to $40,000 in 2002 and later years.

• The maximum annual contribution that can be made to a SIMPLE plan is $7,000 and will go up $1,000 per year until it reaches $10,000 in 2005.