Retirement Plan Contribution Limits

The Economic Growth and Tax Relief Reconciliation Act of 2001 brought beneficial changes to those saving for retirement with an Individual Retirement Account (IRA) or an employer-sponsored retirement plan. These include increased contribution limits and catch-up contributions for individuals who reach age 50 before the end of the taxable year.

The following chart shows the aggregate traditional and Roth IRA contribution limits for 2005 through 2008. Remember, you have until April 17, 2006 to make your IRA contribution for the 2005 tax year.

	IRA Contribution Limits
Tax Year	Age 49 and below	Age 50 and over
2005	$4,000	$4,500
2006-2007	$4,000	$5,000
2008	$5,000	$6,000

If you are participating in an employer-sponsored retirement plan, now is a good time to review your annual contribution amount. You may want to increase it to take advantage of the maximum allowable amount for 2006 listed in the following chart.

	401(k), 403(b), and 457 Plan Contribution Limits
Tax Year	Age 49 and below	Age 50 and over
2005	$14,000	$18,000
2006	$15,000	$20,000

Schedule a complimentary retirement planning consultation with your Financial Consultant at Western Members' Financial Services. Simply call 310-536-5042 or 877-254-9328, x5042.

Securities and annuities transactions are offered through XCU Capital Corporation, Inc., member NASD, SIPC. Insurance is offered through Focus Insurance Agency, Inc., a wholly owned subsidiary of XCU Corporation, Inc., license number in California is #0727864.

Investment and insurance products are not credit union deposits, are not insured by the NCUA or any federal government agency, are not obligations of or guaranteed by Western, or XCU Capital Corporation, Inc., or Focus Insurance Agency, Inc., and subject to investment risks, including possible loss of principal amount invested.