While you consider IRA contributions, you may want to also review IRA investments.
Most workers have until April 18, 2017 (April 19 in some states), to contribute to an IRA for 2016. At the same time, contributions to 2017 IRAs are now permitted. The earlier your money goes into the account, the more time for tax-deferred investment buildup.
Here are some quick tips to consider:
• For 2016 and 2017, total contributions to traditional and Roth IRAs cannot be more than$5,500, or $6,500 for those age 50 or older.
• IRA contributions can’t exceed taxable compensation for the relevant year.
• Contributions to a traditional IRA are prohibited for those 70½ or older. Contributions to a Roth IRA are permitted, regardless of age.
• If married couples file a joint tax return, one spouse may be able to contribute to an IRA even without taxable compensation for the year. The amount of the couple’s combined contributions can’t exceed the taxable compensation reported on the joint return.
Read more in our January 2017 Newsletter.
Tags: 2016, 2017, contributions, cpa, investments, IRA, stephen merritt, tax returns, virginia beach