As part of looking out for our clients, we actively monitor numerous resources, including the IRS, through its regular tax tips and newsletters.
With this year’s tax filing deadline looming, here’s a recent reminder that’s especially relevant:
You still have time to contribute to an IRA and apply that activity to your 2017 return.
Anyone with an IRA may be eligible for a tax credit or deduction on their 2017 tax return if they make contributions by April 17, 2018.
Our clients already are familiar with IRAs, since they’ve come to us for help in rolling over their portfolios into a self-directed account. But you also probably have friends, relatives or colleagues who may not yet have adopted this tax-beneficial investing strategy.
So you may want to pass along some of these points from the IRS regarding traditional and Roth IRAs:
- An IRA is designed to enable employees and the self-employed to save for retirement.
- Most taxpayers who work are eligible to start a traditional or Roth IRA or add money to an existing account.
- Contributions to a traditional IRA are often tax deductible, but distributions are generally taxable.
- Contributions to a Roth IRA are not deductible, but qualified distributions are tax-free.
- Generally, eligible taxpayers can contribute up to $5,500 to an IRA. For someone who was 50 years of age or older at the end of 2017, the limit is increased to $6,500.
- The same general contribution limit applies to both Roth and traditional IRAs. However, a Roth IRA contribution might be limited based on filing status and income.
- An individual can’t make regular contributions to a traditional IRA in the year they reach 70½ and older. However, they can still contribute to a Roth IRA and make rollover contributions to a Roth or traditional IRA regardless of age.
For more information, we highly recommend the IRS’ comprehensive website, www.irs.gov.
And remember, we at Investment Resource of AZ, LLC are also available to help.
Having — and growing — a retirement account is a smart strategy for anyone. And you can “turbo-charge” the financial advantages when you roll over your investment funds into a self-directed account. Helping investors navigate that often-confusing process is our specialty.
Of course, you should do your own due diligence in determining whether a rollover makes sense for you. Once you have decided that it does and you are ready to tackle the process — or if you simply want more information — contact our team. We have successfully rolled over millions of dollars in IRA funds for clients, educating them, streamlining the process and supervising each step of the way for them. Call us at 602-885-6122 or email firstname.lastname@example.org.