December 21, 2016
individual retirement accounts; retire with $100,000 per year in income

Year-End IRA Reminders

With the end of the year approaching, take a moment to make sure you’ve taken care of your Individual Retirement Accounts: Contribute the maximum. In 2016, you can contribute a maximum of $5,500, or $6,500 if you are age 50 or over. Remember, you have to have taxable income to contribute to an IRA, but if you are married and filing jointly, you can each make contributions even if only one of you is working. Speak to a tax advisor to learn about how your deductions will be affected by an employer-sponsored retirement plan. Don’t contribute more than the max. If you contribute more than the IRA limits for 2016 (or more than your income allows you to contribute), you will be subject to a 6% tax on the excess contribution amount for each tax year the money remains in your account. You can withdraw excess contributions by the due date for your tax return. For more information about IRAs or end-of-year tax planning, please call us or another qualified tax advisor. Tip courtesy of IRS.gov