Every year I wait and see if the IRS will increase the amount of money that can be contributed to a traditional or Roth IRA. For the past several years, the amount has remained the same: $5,000 ($6,000 if you're 50 or older). This year, the limit has been increased by $500.
This IRS increasing the amount of money that can be contributed to an IRA is great news because it means you can stash away more money for the future. In the case of a Roth IRA, that money can be sheltered from future taxes.
The old adage is true: Time is money. If we fail to contribute money to our IRAs during any given year, we can't get that opportunity back. The IRS increasing the contribution limit presents all of us with another opportunity - the opportunity to put away more money so we can be financially independent in the future. Don't pass up this opportunity because it won't come again.