For many taxpayers the greatest benefits will be felt from the long-term impact of increased contributions to Traditional and Roth IRA accounts. The IRA remains a main tax-advantaged savings plan for workers without an employer- sponsored plan.  With the new rules this “cornerstone” of retirement savings has become even more attractive.
	Starting in 2002, the annual traditional and Roth IRA limits will be raised.  The annual contribution limit of $2,000 has been fixed for more than a decade.  In 2002 - 2004 the limit for both traditional and Roth  IRAs will raise to $3,000.  In 2005, it  will rise to $4,000 and in 2008, it will reach $5,000.  There after increases will be indexed to inflation.
	Catch-up provisions - originally presented as  “Enhanced Fairness to Women” are fortunately available to ALL taxpayers who are age 50 and above and have contributed up to the maximum limit.  This will permit the contribution of additional dollars to catch up for years where contributions were not made to a plan or fell below a level to stay on track for retirement goals.  If you are covered by an employer plan and your base-line AGI limits are met for Traditional IRAs, the catch up contributions would be deductible.
	The IRA catch up contribution is $500 for 2002-2005 and $1,000 for 2006 and thereafter.