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Probably the next most significant change is that there is no age cap on your ability to contribute to an IRA, as long as you have some income, or your spouse has some income.

Here’s why that’s big. Let’s say you are 72 and have earned income, or your spouse does, you’ll now be eligible to contribute an additional $14,000 per year as a married couple to a traditional IRA. Previous laws prevented contributions after age 70 1/2.

Contributing to an IRA without age limits could generate two huge additional benefits! First, if the $14,000 lowers your taxable income enough, you may qualify for a Savers credit. A tax credit is free money from the federal government. Second, if you are receiving Social Security and any other income, you could see a substantial percentage reduction in your effective tax rate.

So to summarize, by removing the age cap on IRA contributions:

1. You can shelter an additional $14,000 from income taxes per year (MFJ)

2. By doing so, you may qualify for an underutilized federal tax credit

3. These two combined could drastically reduce your effective tax rate

Would you like to see if you can benefit from 2 or more of those benefits? If you would like a review of your strategy to possibly lower income taxes for the rest of your life, please

Next week I’ll address the most significant reason why the federal government passed this law. Based on this BIG change, I’ll discuss why everyone should now review their retirement income plans.