IRA Contribution Limits

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Is there a limit on the amount I can deduct for IRA contributions?

IRA Contribution Limits

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.

   

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