Important Changes for 2002

Retirement planning services. Beginning in 2002, if your employer has a qualified retirement plan, qualified retirement planning services provided for you (or your spouse) by your employer will not be included in your income. For more information, see Publication 553, Highlights of 2001 Tax Changes.

Elective deferrals. Beginning in 2002, the limit on the amount of your wages you can elect to defer into certain retirement plans (such as section 401(k) plans) will increase each year over a 5-year period. If you are age 50 or older, you will also be able to make additional catch-up elective deferrals. See Elective Deferrals in the discussion on retirement plan contributions under Employee Compensation.