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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