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Traditional IRAs

The traditional IRA allowed an individual to put away $3,000 per year in 2003, $3,500 for those 50 years or older. As you see in Table 4-2, those limits increase until they reach $5,000 in 2008. You can see that the IRA maximums are much lower for a traditional IRAs than for other qualified plans. You should also keep mind that IRAs qualify for the catch-up provision as noted in our discussion of TSAs above.

Table 4-2. Maximum IRA Contributions, 2002–2008+
Tax YearUnder Age 50Age 50 or Older
2002$3,000$3,500
2003$3,000$3,500
2004$3,000$3,500
2005$4,000$4,500
2006$4,000$5,000
2007$4,000$5,000
2008 and after$5,000$6,000



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