Roth IRAs have always been an excellent way to make tax-free withdrawals. Starting this year, a new tax bill recently passed by Congress will enable persons 50 and older to stash larger sums of money in these accounts. For 2001, the maximum contribution to a Roth IRA is $2000. Next year, the maximum annual contribution will first jump to $3000, and then $5000 in later years. In addition to new maximum annual contributions, people 50 and older will also be able to add "catch up" contributions. The maximum amount allowed for these catch-up contributions will first be $500, and will eventually be as high as $1000 annually. Catch-up provisions, says Patricia Thompson, vice chairwoman of a national committee on individual taxation for the American Institute of Certified Public Accountants, "would allow the taxpayer to set more aside for retirement, and would let him do it in the year he has the money while he's working." In addition, the recent changes in the federal estate tax make Roth IRAs one of the more effective methods for transferring wealth to the next generation.