The Deadline is Fast Approaching!
Time to Fund Your IRA
Your mind may be preoccupied with gathering last year’s financial information in order to file your tax return, but don’t let this window slip by you… the window of opportunity to impact your future retirement. Each year, you have until the tax filing deadline (April 17th this year) to contribute to either your Traditional IRA or a ROTH IRA.
There are income limits for Traditional IRAs if you want your contribution to be tax deductible. Please see the link below for details: https://www.irs.gov/retirement-plans/ira-deduction-limits
There are also income limits for Roth IRAs, per below: https://www.irs.gov/retirement-plans/plan-participant-employee/amount-of-roth-ira-contributions-that-you-can-make-for-2016
If you qualify for Roth IRA contributions, you should consider it. Having a mix of both pretax Traditional IRAs and Roth IRA contributions can help you create additional flexibility in retirement to respond to a great unknown—future tax rates. The Traditional IRA allows a tax break up-front, but a Roth IRA may give you a greater tax advantage in the future since all the earnings may be tax-free upon withdrawal (as long as they are qualified withdrawals). There may also be advantages to a Roth IRA for transferring your assets to your family. Please speak to your Shadowridge Investment Advisor for more details.
If you meet the income limits, for the 2016 tax year, your total contributions to all of your Traditional and Roth IRAs (combined) cannot be more than:
• $5,500 ($6,500 if you’re age 50 or older), or
• your taxable compensation for the year, if your compensation was less than this dollar limit.
Whatever you can contribute has the potential to create a positive impact on your future.
Your Shadowridge Asset Management, LLC Investment Advisor would be glad to assist you in setting up a new IRA account, or helping you to fund your existing IRA or Roth IRA account. Just give your Advisor a call or contact our office at 888-434-1427.
April 17th will be here before you know it! Don’t let this window of opportunity pass you by.