Contribution limits on IRA'a

[maat55]

I heard Dave Ramsey say that with the Bush tax cuts ending, contribution limits will revert back to 2k a year.

I've been searching for information and found this:

http://www.hrblock.com/presscenter/facts/taxfactspdf/118_IRA_Deposit_Limits.pdf

I haven't found any corelation between the Bush tax cuts, but this information says limits revert downward.

Has anyone heard what the limits will be going forward?

[cptacek]

The Wall Street Journal says that the limits were supposed to go back down in 2011 when the other Bush tax cuts expire, but the IRA contribution limits were later made permanent, and pegged to inflation:
Reviewing IRA Rules - WSJ.com

[MonkeyMama]

I heard Dave Ramsey say that with the Bush tax cuts ending, contribution limits will revert back to 2k a year.

I've been searching for information and found this:

http://www.hrblock.com/presscenter/facts/taxfactspdf/118_IRA_Deposit_Limits.pdf

I haven't found any corelation between the Bush tax cuts, but this information says limits revert downward.

Has anyone heard what the limits will be going forward?

Dave is on a bad roll. I was cringing at a couple of things he said last week - misinformation. (Sorry, I don't remember what - but usually his facts are better).

Yes, IRA contribution limits are now indexed to inflation. (Nothing in the tax code is "permanent." )

[maat55]

The Wall Street Journal says that the limits were supposed to go back down in 2011 when the other Bush tax cuts expire, but the IRA contribution limits were later made permanent, and pegged to inflation:
Reviewing IRA Rules - WSJ.com

What a relief. Thanks cptacek.

[maat55]

Dave is on a bad roll. I was cringing at a couple of things he said last week - misinformation. (Sorry, I don't remember what - but usually his facts are better).

Yes, IRA contribution limits are now indexed to inflation. (Nothing in the tax code is "permanent." )

I questioned it when I first heard him say it, he must assume sometimes when he is not sure.

[disneysteve]

The contribution limits are linked to inflation but I really do wish they would raise the limits to a level that would actually allow someone to use an IRA/Roth as a worthwhile retirement plan. Only about half of Americans are eligible for a 401k-type plan. The other half have a Roth as the only tax-advantaged account. $5,000/year is inadequate for anyone who earns more than $33,000/year if your goal is to save 15% for retirement.

[maat55]

The contribution limits are linked to inflation but I really do wish they would raise the limits to a level that would actually allow someone to use an IRA/Roth as a worthwhile retirement plan. Only about half of Americans are eligible for a 401k-type plan. The other half have a Roth as the only tax-advantaged account. $5,000/year is inadequate for anyone who earns more than $33,000/year if your goal is to save 15% for retirement.

I agree, it seems very unfair that people who do not work for employers who provide 401k's are limited in their tax deductable investments.