November 11, 2004

Hi Everybody,

The new year is almost upon us and with it will come some new contribution limitations for your IRAs, 401(k)s, 403(b)s and the like.

Since these vehicles represent just about the only tax shelters we have left, I wholeheartedly recommend that you maximize your contributions to these plans. That is of course, if after buying all your Red Sox paraphernalia, your budget still allows!

I’ve also listed the additional “Catch-up” contributions that can be made if you have joined the AARP set (over 50) as I did last year.

• Traditional IRA: Limit $4,000, Catch-up Contribution $500
• Roth IRA: Limit $4,000, Catch-up Contribution $500
• 401(k) Plan: Limit $14,000, Catch-up Contribution $4,000
• 403(b) Plan: Limit $14,000, Catch-up contribution $4,000
• SIMPLE IRA: Limit $10,000, Catch-up Contribution $2,000
• SEP/IRA: Limit $42,000, Based on 25% of Eligible Compensation

If you have any questions or feedback please give us a call.

Happy Holidays

Jim