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The Economic
Growth and Tax Relief Reconciliation Act of 2001
Summary |
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by James Lange, Esq.,
CPA |
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Tables-Retirement Plan Limits
Increased IRAs and Roth
IRAs
Table 4
Deductible
IRAs
For taxable
years
beginning in: |
The
deductible
amount is: |
| 2001
|
$2,000 |
| 2002 through
2004
|
$3,000 |
| 2005 through
2007
|
$4,000 |
| 2008 and thereafter
.
|
$5,000 |
Substantial Increases in
Allowable Contributions to 401(k), 403(b) and Other
Retirement Plans
Table 5
Increase in
Employees Retirement Contribution
For taxable
years
beginning in
calendar
year: |
The
applicable
dollar amount
is: |
| 2001
. |
$10,500 |
| 2002
. |
$11,000 |
| 2003
. |
$12,000 |
| 2004
. |
$13,000 |
| 2005
. |
$14,000 |
| 2006 and
thereafter
.
.
. |
$15,000 |
Catch-Up Provisions for
Individuals 50 and Older
Table 6
IRA Catch-Up
Contributions for 50 or Older
For taxable
years
beginning in: |
The
deductible
amount is: |
| 2002 through
2005
..
.. |
$500 |
| 2006 and
thereafter..
.... |
$1,000 |
Table 7
Increase of
Employee Contribution for Taxpayers 50 and
Older
For taxable
years
beginning in: |
The
applicable dollar
amount
is: |
| 2002.
.
.......................
|
$1,000 |
| 2003
.
................
.. |
$2,000 |
| 2004
..
.
...
|
$3,000 |
| 2005
.
....
. |
$4,000 |
| 2006 and
thereafter
....
.
|
$5,000 |
Table 8
Saving for
Retirement
Maximum Any Individual Under
50 Can Save/Maximum
Those 50 And Older Can Save
| |
2002 |
2003 |
2004 |
2005 |
2006 |
2007 |
2008 |
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| Individual
Retire- |
$
3,000 |
$
3,000 |
$
3,000 |
$
4,000 |
$
4,000 |
$
4,000 |
$
5,000* |
| ment
Accounts |
3,500 |
3,500 |
3,500 |
4,500 |
5,000 |
5,000 |
6,000 |
| |
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| Simple
Plans** |
$
7,000 |
$
8,000 |
$
9,000 |
$10,000 |
$10,000* |
$10,000* |
$10,000* |
| |
7,500 |
9,000 |
10,500 |
12,500 |
12,500 |
12,500 |
12,500 |
| |
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| 401(k),
403(b) |
$11,000 |
$12,000 |
$13,000 |
$14,000 |
$15,000 |
$15,000* |
$15,000* |
| and 457
Plans*** |
12,000 |
14,000 |
16,000 |
18,000 |
20,000 |
20,000 |
20,000 |
| |
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| Roth 401(k) |
N/A |
N/A |
N/A |
N/A |
$15,000 |
$15,000* |
$15,000* |
| |
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|
|
20,000 |
20,000 |
20,000 |
*Plus inflation adjustment in
$500 increments.
**Simple plans are for
enterprises with 100 or fewer workers.
***403(b) plans are for
nonprofits; 457 plans are for governments. In the last
three years before retirement, workers in 457 plans can
save double the limit for those under 50.
Note: The maximum that an employer can
contribute annually will rise to $40,000 next year, a 14
percent increase, and will be adjusted for inflation
thereafter.
Table 9
Expansion of
SIMPLE
For taxable
years
beginning in
calendar
year: |
The
applicable
dollar amount
is: |
| 2002
.
|
$7,000 |
| 2003
.
|
$8,000 |
| 2004
.
|
$9,000 |
| 2005
......
.. |
$10,000 |
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