No Word on 2007 Limits Yet

Although some investors have begun asking about the 2007 investment limits already, that figure won’t be known until late October. For the last several years, the annual limits have been set by a tax reform law that boosted the allowable amounts over a schedule outlined in that law. However, 2006 is the last year of the schedule under that law and starting in 2007 and beyond, the policy will revert to the former practice of being adjusted by the IRS according to an economic measure. The maximum “catch-up” contributions allowed for investors age 50 and older—currently $5,000—which also was determined in recent years by a pre-set schedule, will be similarly adjusted moving forward.