Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Tax Deductions and other Taxes topics.
If you are hoping to net a tax cut by making a contribution to your individual retirement account (IRA), remember that there are maximum contribution limits for the purposes of personal tax deductions. Those maximums have been increased for 2005 to $4,000 (up from $3,000). As an added incentive, individuals who were at least 50 years old before the end of 2005 qualify to make an additional “catch-up” contribution of $500.