Max out on retirement - MSNewsNow.com - Jackson, MS

Max out on retirement

UNDATED (AP) _ If you have a large enough income to to make the maximum contribution for your retirement, you get a double-edged benefit. You are putting money away for those future years -- and you are reducing your current tax liability.

For 2005, the limit on 401-K account contibutions is 14-thousand dollars. And for those aged 50 and older, the ceiling is 18-thousand dollars.

Even if you don't have an employer-sponsored account, you may be eligible to set up your own Individual Retirement Account or a Roth IRA through a bank or other financial institution.

The contribution limit for IRAs for 2005 stands at four-thousand dollars per person. It's 500 dollars higher than that for those 50 and older. That means a husband and wife may be able to sock away as much as nine-thousand dollars into their IRAs.

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