Retirement Vehicles

by Pat Zaby September 1, 2002 0:00 AM

Individual Retirement Accounts are the basic vehicle that can be used to accumulate funds tax free to help secure your future. This year, the amount tax payers will be able to contribute has been increased by 50% to $3,000. If you are over 50 years of age, you can put $3,500 away each year. For more information, go to click here.

$3,000 Annual Contribution @ 7%
Years Until Retirement Amount Accumulated
10 $41,499
15 $75,387
20 $122,986
25 $189,747
30 $283,382
35 $414,711
40 $598,905
45 $857,248

If you haven’t started a retirement plan and the chart above reveals that you are not going to have enough to live in the same lifestyle that you had expected, there are other programs such as Simple IRA, SEP, and 401(k) plans that will allow you to put more away each year. For information on specific plans, go to www.IRS.gov.

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