Do you know you do not need to wait until 2006 for the additional $500 IRA contribution if your birth date was 1/1/1956?

When the IRS Code makes reference to an age, it uses language such as "attains the age of ... as of the close of the taxable year". As that is not defined or further elaborated upon, the legal meaning of that phrase applies.

It has been well established in case law, dating back to an English common law
case in 1663. That one attains a given age on the day before the anniversary of his birth (see quote from Wright v. U.S. 197 F. 297 (1912) below at which time this was already well-established in the U.S.; see also 5 A.L.R.2d 1143).

If the taxpayer’s birthday was January 1, 1956, he/she technically obtains 50 years of age on December 31, 2005 by the above case. Based on this, he/she is eligible for the additional $500 IRA contribution. For 2005, the maximum contribution is $4,000. Individuals 50 and over may contribute $4,500.

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