November 3, 2016
contribute to retirement accounts

Don’t Forget to Contribute to Retirement Accounts!

Contribute to retirement accounts before the end of 2016! You need to contribute to retirement accounts like your 401(k) or other workplace retirement plan by December 31st. This ensures your contributions count for 2016. However, you still have until April 15, 2017, to contribute to other retirement accounts such as an IRA for 2016. Low- and moderate-income workers can also take advantage of the Retirement Savings Contribution credit. This rewards them for making contributions to IRAs, 401(k)s, and similar retirement plans. The maximum credit is $1,000 per taxpayer, though other deductions and credits will reduce the benefit. With this credit, eligible taxpayers deduct retirement contributions from their Adjusted Gross Income, as usual. On top of that, they can deduct an additional percentage of their contribution, as outlined in this chart: Saver’s Credit *Single, married filing separately or qualifying widow(er) Though anyone over 18 can apply for the credit, full-time students and those claimed as dependents are not eligible. So don’t forget! Contribute to retirement accounts to prepare for your future and catch a break right now! Tip courtesy of IRS.gov