Q. Aren’t contributions to IRAs scheduled to revert to the lower $2,000 limit in the near future? J.A.H., Verona, N.J.
A. Not anymore. When contribution limits for IRAs, 401(k) plans and various other employer-sponsored retirement plans were increased in 2001, the higher limits were scheduled to expire in 2010. However, the Pension Protection Act of 2006 (PPA) made these increases permanent. Under the PPA, the contribution limits for these retirement saving vehicles are indexed annually for inflation.
Tip: The contribution limit for IRAs hasn’t moved at all in recent years. It’s been $5,000 ($6,000 if you’re age 50 or older) since 2008.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/14943/adjustments-to-ira-contribution-limits "