Thumbs Up: More for Retirement

Physician's Money Digest, May 31 2004, Volume 11, Issue 10

Once again this year, the contributionlimit for 401(k) and 403(b)retirement plans is going up. For2004, the maximum you can put intothese types of retirement accounts is$13,000. If you're over age 50, youcan kick in an extra $3000, raising thetotal contributions to $16,000. Self-employedphysicians who set up asolo 401(k) can put a maximum of$41,000 into their retirement accounts,while those with simplified employeepension (SEP) plans can invest 25% oftheir income, up to a maximum of$41,000. By maximizing your retirementplan contributions as much aspossible, you save in two ways: Yousquirrel away money for your retirementand you don't pay income taxeson any cash put into the plan.