Maximize to Minimize

One of the best ways to minimize your income taxes is to maximize your pre-tax contributions to a retirement savings plan. The pre-tax contribution limits for 2007 are shown below. Try to maximize your contributions this year for the double benefit of lower income taxes and higher retirement savings balances.

2007 Retirement Savings Contribution Limits

Plan Type Under Age 50 Age 50+
401(k) $15,500 $20,500
403(b) $15,500 $20,500
SIMPLE $10,500 $13,000
IRA $4,000 $5,000