Home : Blogs : Leslie Bloss, Seattle Real Estate Professional : Leslie's Blog

New Change in the Tax Laws Regarding Contribution Limits for IRAs

Saving and investing money is one of my favorite subjects--I was not aware that starting on January 1, 2008, there was a change in the tax law, whereby, individuals may contribute an extra $1,000 a year in traditional and Roth IRAs. Therefore, the annual limits go to $5,000 for anyone under age 50 and $6,000 for those 50 and over. When you consider the value of money over time principal, this is very good news.

The SEP IRA contribution has also had an increase in the contribution level. “The maximum employer's contribution to a SEP -- used primarily by self-employed individuals -- is $46,000 this year, up $1,000 from last year.”

ABC News has an interesting article today entitled, “Net Gains: Retire With a Larger Nest Egg,” by David McPherson. He also mentions that “The good news is that due to inflation indexing, the income eligibility limits also increased on Jan. 1.”

Besides reading the article, you can get more information from IRS Publication 590. “The 2007 edition contains details for 2008 contributions.”

Please visit my site for information and support. Seattle, Bellevue, Queen Anne, Wallingford, Green Lake, Fremont, Green Lake and Redmond, Washington Real Estate Property Listings. Just click on the blue "homes search" button and then click on the area you wish to view. You can also search by street address or the MLS number.

Posted by Leslie Bloss, Seattle Real Estate Professional on 01/16/2008 05:04 PM

Comments (6)

traditional and roth iras, contribution level, sep ira, tax law change

6 Comments on New Change in the Tax Laws Regarding Contribution Limits for IRAs

Leslie, if saving and investing money is one of your favorite subjects, then I'm subscribing- this is great info for everyone. Keep 'em coming, and thanks!

01/16/2008 05:10 PM

by Options Realty

Thanks Leslie. It's about time we had some good news to talk about.

01/16/2008 05:14 PM

by Wendy Torres (CENTURY 21 Mulvey Real Estate)

Hi Laurie, I don't have all the "saving and investing money" answers but I have been a student of it for a long time. If you have specific questions that I do not know the answer to, I maybe able to direct to a place when you can find the information. Thank you for the note.

Hi Wendy, Here Here!! Thanks for writing!

01/16/2008 06:14 PM

by Leslie Bloss, Seattle Real Estate Professional (REALTY EXECUTIVES/BRIO )

Interesting -thanks for the update, Leslie

01/16/2008 07:33 PM

by Courtney Cooper, Seattle Realtor/Broker- Seattle Real Estate, Seattle WA (Cooper Jacobs Real Estate Services - Seattle Real Estate )

Hi Courtney, You are welcome.

01/17/2008 10:25 AM

by Leslie Bloss, Seattle Real Estate Professional (REALTY EXECUTIVES/BRIO )

Leslie I knew that was coming. Now if I can only leave it in there and not take it out every winter!!!

01/17/2008 05:52 PM

by The Best Spot Realty/Waterfront Real Estate/Ooltewah Real E

Leave a response…

Name:

Notify me of new comments:

Comment:

What does the graphic say?