Those saving for retirement can expect higher contribution limits for their Roth IRAs, but they should remember that income limits have not been changed by the new tax law. Single individuals have to make below $110,000 of adjusted gross income in order to contribute to a Roth IRA, while married couples that file a joint return have to earn less than $160,000 of adjusted gross income. The new tax law, however, allows individuals 50 years and over to contribute $3,500 for the year 2002 through the year 2004, and between 2005 and 2008, the contribution limits increase from $4,500 to $6,000. Roth IRAs also have other advantages for those that have earned income; earnings within the plan can be withdrawn tax free and free of the 10 percent penalty that usually applies to early withdrawals. Additionally, beneficiaries will be able to keep the account on a tax-deferred basis, free of federal income tax.