Tax Tip: Still Time for Retirement Savings

April 8 -- Among the major changes in this year's tax code, there is an increase in what you can put away for your retirement, starting with an IRA.

"You can now put in $3,000," says Don Roberts of the Internal Revenue Service. "For many years now, I think better than 20 years, it's been a $2,000 limit. Now it will be $3,000, and this applies to the 2002 tax year."

That means you have until April 15 to put money in last year's IRA, says Roberts.The maximum contribution for 401(k)s last year was also raised to $11,000. And for some, there's a special catch-up provision.

"If you are age 50 or over by the end of 2002, you can put an additional amount in," says Roberts. "For IRAs or simple plans, that's an additional $500, for a 401(k), it's an additional $1,000."

So if you are over 50, your IRA limit went from $2,000 to $3,500 this year. And your 401(k) limit went up to $12,000 a year.