I guess we have the "CPA and accountant lobby" to thank for these IRA increases. I can't see any reason for this amount of complexity - they should just raise limits to 5K IRAs and 10K for 401Ks for everybody and leave it at that!
IRA Provisions in the Bill
Raises limits for traditional and Roth IRAs from $2,000 now to $3,000 in 2001, $4,000 in 2002 and $5,000 in 2003.
Indexed for inflation thereafter.
For individuals age 50 and up, raises limit to $5,000 in 2001.
401(k) Provisions in the Bill
Boosts maximum annual tax-deferred contributions from $10,500 now to $11,000 in 2001, $12,000 in 2002, $13,000 in 2003, $14,000 in 2004 and $15,000 in 2005. Indexed for inflation thereafter. Limits on employer matching contribution also increased.
For individuals age 50 and above, contribution limits would rise to $16,000 in 2001, $17,000 in 2002, $18,000 in 2003, $19,000 in 2004 and $20,000 in 2005.
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