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Whole Ball of Tax 2003
RETIREMENT BY THE NUMBERS FOR 2003
In most cases, contribution limits for both employer-sponsored and
self-directed retirement plans have increased significantly in the few
years, allowing people who can afford to do so to save even more for
retirement. Added incentive also is available to those age 50 and over
who are eligible to make catch-up contributions above the maximum
contributions allowed for most types of plans.
Employer-sponsored Programs
|
Retirement Vehicle |
Maximum Pre-tax Employee Contribution |
Catch-up Contributions |
401(k), 457 and 403(b) plans |
$12,000 |
$2,000 |
SIMPLE plans |
$8,000 |
$1,000 |
SARSEP*
(Salary Reduction SEP) |
$12,000
|
$2,000 |
IRAs**
|
Retirement Vehicle |
Maximum Contribution Limits |
Catch-up Contributions |
Adjusted Gross Income Restrictions |
Traditional Deductible IRA |
$3,000 – pre-tax dollars |
$500 |
To Make Deductible Contributions:
Single filers: under $40,000; phasing out completely at
$50,000
Married, filing jointly: under $60,000; phasing out
completely at $70,000 |
Traditional Nondeductible IRA |
$3,000 – after-tax dollars |
$500 |
N/A |
Roth IRA |
$3,000 – after-tax dollars |
$500 |
To Establish Roth IRAs:
Single filers: under $95,000; phasing out completely at
$110,000
Married, filing jointly: under $150,000; phasing out
completely at $160,000 |
* SARSEPs must be established prior to January 1,1997. The
maximum contribution and catch-up amounts are the same as for
401(k), 457 and 403(b) plans.
** Individuals have until April 15, 2003 to make contributions to
their IRAs for 2002. The AGI restrictions for 2002 traditional IRAs
for single filers is under $34,000, phasing out completely at
$44,000. For married filing jointly, AGI must be under $54,000,
phasing out completely at $64,000. The AGI restrictions for Roth
IRAs as well as maximum compensation levels for SEP-IRAs are the
same for both 2002 and 2003 tax years.
Source: CCH INCORPORATED, 2003
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nb-03-13
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For more information on the president's 2003 Economic Growth Tax Plan, please visit,
2003 Bush Tax Plan
The 2003 Whole Ball of Tax also is available in print. If you would like to request
the print version, please contact:
Leslie Bonacum
(847) 267-7153
mediahelp@cch.com
Neil Allen
(847) 267-2179
allenn@cch.com
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