Take advantage of new tax benefits for retirement planning.

Publication: CPA Client Bulletin

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COPYRIGHT 2003 American Institute of CPA's

Tax changes in both 2001 and 2002 made many changes in the retirement planning area, allowing taxpayers to contribute more to retirement plans, get larger tax benefits for doing so, and have more options for handling plan distributions. Whether you are an employee, a business owner, or a retiree, you should consider these benefits in doing your 2003 tax planning. Also, you may still have time to make them work for you on your 2002 tax return.

Higher contribution limits for IRAs, employer plans

For their 2002 tax year, taxpayers may contribute up to $3,000 to either traditional or Roth IRAs. The elective deferral limit for 401(k) plans, 403(b) annuities (for employees of public schools and 501(c)(3) organizations), 457 plans (for employees of state or local governments or tax-exempt organizations), and salary reduction SEPs (simplified employee pensions) is generally $11,000. For SIMPLE plans, the...

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