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February 23, 2009

ERTA (Economic Recovery Tax Act of 1981)



ERTA changed the laws to allow participants covered by employer-sponsored plans to make participant contributions to IRAs. Prior to ERTA, only individuals not covered by an employer sponsored plan could make regular contributions to IRAs.

Referring Cite


Additional Helpful Information

  • ERTA increased contribution limits to SEP IRAs to $15,000 per year. This limit has since been increased by other tax laws
  • ERTA made investment in collectives a prohibited transaction.

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IRA Rules