Over 20% of Americans wait until the very last day to file taxes. Some call it procrastination!
Not US!! We call it extra time to find ways to save on taxes, while also planning for retirement.
I’ve had several conversations this week about funding IRA’s, and there seems to be some confusion, so I wanted to spend a minute to clarify some main points…
–How much can I put into an IRA? (individual retirement account): $5,500 ($6,000 age 50+)
–Can I fund an IRA even if I have a 401k? Yep
–What is the deadline? Tax Day
–My spouse doesn’t work, can he/she fund an IRA? Yep
–How much can I save on taxes? If you were to fall into the marginal tax rate of 25% and fund $5,500, it could potentially save close to $1,375 on taxes.
–Roth or Traditional IRA? Depends on many factors. But, if you want to save on taxes for 2017, a traditional IRA is your best bet.
Click below – a recent article on cnbc.com that shares more on IRA contributions and other tax saving ideas.