Don't lay a rotten nest egg

Q: What are my options for saving for retirement?

"If your employer sponsors a SIMPLE plan or a 401(k) plan, your first priority is to contribute an amount that will earn the employer match," says Gary Glassman, CPA, a Veterinary Economics Editorial Advisory Board member and partner with Burzenski and Co. PC in East Haven, Conn. "If you can contribute more than that, do it." The maximum contribution limits in 2006 are $10,000 for SIMPLE plans and $15,000 for 401(k) plans. If you're over 50, you can add an additional $2,500 to your SIMPLE plan or another $5,000 to your 401(k) account.

"If your employer doesn't maintain a plan, consider an Individual Retirement Account (IRA)," says Glassman. "If your income is below $50,000 and you're single or the head of household, or your income is below $75,000 and you're married filing a joint return, consider a deductible IRA. Consider a ROTH IRA if you're single or the head of household and your income is below $95,000, or if you're married, filing a joint return, and your income is below $150,000. Which one you choose depends on your tax bracket. The 2006 IRA limits are $4,000 unless you're 50 or older; then they're $5,000."

Gary I. Glassman