Saving for Retirement - Impact of the Tax Relief Act of 2001

Did you know that you will be able to contribute $3,000 to your Traditional or Roth IRA in 2002 and as much as $5,000 in 2008? If you are over 50 you may be able to contribute even more.

Take advantage of these new limits with the tax windfall you will be receiving over the next few years!

Farmers helps you use the increased limit and catch-up contribution provisions for IRAs and qualified plans to be sure you have the funds you need for a more enjoyable retirement. We offer a wide array of retirement programs to help you maximize your retirement income.*

			IRA contributions for both Traditional and Roth are increased from the current $2,000 per person to $3,000 starting in 2002, $4,000 in 2005 and $5,000 in 2008.
			The annual retirement plan (e.g., 401 K) employee salary deferral limit is raised from the current $10,5000 to $11,000 in 2002, and will increase by $1,000 each year until it reaches $15,000 in 2006.
			Retirement preparation has been made easier by allowing greater pension portability. It will be easier to transfer or roll money over from one retirement plan to another, as well as between IRAs and employer-sponsored retirement plans.
			Individuals over age 50 will be allowed to make "catch-up" contributions to their IRAs and other retirement plans that permit employee salary deferrals (e.g. 403(b)s, 457s).

Interested in learning more? Contact your local Farmers agent to find out more about how this new law impacts you.

*Annuities issued by Farmers New World Life Insurance Company: 3003 77th Ave., S.E., Mercer Island, WA 98040-2890.

Form# FNWL020028

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