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Saving
Now for the Future
Like most
people, I've resolved to save more money this year in order
to support a comfortable retirement. And, even though my retirement
seems well into the future there is some instant gratification.
By opening an Individual Retirement Arrangement (IRA) before
April 15, I may be able to take advantage of some potential
tax benefits on my 2002 return.
IRA
Tax Benefits
Beginning with tax year 2002, individuals can make annual
contributions to a traditional or Roth IRA of up to $3,000
or 100% of earned income, whichever is less. Married couples
filing jointly can contribute up to $6,000 ($3,000 per IRA)
provided either spouse has earned income of at least that
amount. As an added benefit, individuals age 50 or older are
eligible to take advantage of a "catch-up" provision
and contribute an additional $500 to an IRA beginning in 2002.
Over the next several years the maximum annual contribution
amount will increase.
Customers
can set up an IRA with a minimal initial contribution. By
continuing to add to that on a monthly basis or when their
finances allow, the account has the potential to grow on a
tax-deferred basis and becomes a great resource to help save
for the future. The sooner you begin saving, the more time
you have to take advantage of the benefits an IRA provides.
State
Farm offers several products that can be used as an IRA funding
vehicle. Registered State Farm Agents can help you determine
which IRA and/or funding vehicle may best meet your needs.
About
the Author:
Anne Wiley is a Registered State Farm Agent located in Clearwater.
Her office number is 727-530-3621.
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