Retirement: Planning Strategies: Catching Up on Retirement Savings

Good news for savers age 50 and older

Attention 50-somethings. The IRS has a provision allowing you to "catch-up" your retirement savings.

The Economic Growth and Tax Relief Reconciliation Act (EGTRRA), passed in 2001, introduced a savings incentive for people age 50 and older to save beyond their regular contribution limit to IRAs.

Now, with the passing of the 2006 Pension Protection Act, these temporary EGTRRA provisions have been made permanent.

For Tax Year 2006 and after, if you make the annual maximum allowable contribution to your IRA, you can make an additional $1,000 catch-up contribution to your traditional IRA or Roth IRA.

Call your financial professional today to learn how making a special "catch-up" contribution can impact your retirement savings and help you save more for retirement.

To obtain a prospectus, download online or call Customer Service at 1.800.222.5852

While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that The Principal^® is not rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. For more information about our funds, including their full names, please see the Principal Funds, Inc. prospectus or call Customer Service at 1.800.222.5852.

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