The Economic Growth and Tax Relief Reconciliation Act, which went into effect January 1, 2002 (and re-authorized in 2006), increased contribution limits to IRAs. Limits are as follows: Year 2006: $4,000 Year 2007: $4,000 Year 2008: $5,000 Those 50 years or older may contribute an additional $1000 annually. While beneficial to all workers over age 50, these "catch-up contributions" are especially helpful to women, who may have failed to save adequately for retirement due to interruptions in their careers for child-rearing and family caregiving.