Tax Break Opportunities

Until now the most you could contribute to a traditional IRA account or a Roth IRA account has been $2,000 per year. Starting in 2002 you'll be able to sock away $3,000 if you are under 50 and $3,500 if you're over. In 2005 a person under 50 can earmark $4,000; a person over 50, $4,500. In both 2006 and 2007 the older group can put aside an additional $500; in 2008 the limits are $5,000 and $6,000, and then will be adjusted for inflation in $500 increments.