Over the years, the rules governing IRA contributions have been
relaxed somewhat to encourage greater participation. In 2002,
individuals could contribute a maximum of $2,000 a year to a
traditional IRA and strict income limits applied to those covered
by another retirement plan. However, for 2016, income limits are
more generous and you may be able to contribute up to $5,500 a year
combined to a traditional and/or Roth IRA.
So if you may have dismissed IRAs
in the past, you may want to take a fresh look at these valuable
tax-advantaged savings vehicles.
Traditional Benefits
Contributions made to a traditional IRA may be deductible
and account funds grow tax-deferred. No tax is due until
withdrawals are made — likely in retirement when you might be
in a lower tax bracket.
