Have you made your 2016 Roth IRA (or traditional IRA) contribution?
If you have not yet made the maximum contribution, and are eligible to make contributions, you still have time!
Tax payers have until April 18th of 2017 to make their Roth IRA and traditional IRA contributions for the 2016 tax year. If you are within the income limitations to make contributions, a Roth IRA is an excellent investment account as investment growth is tax deferred and withdrawals in retirement can be tax free.
For 2016, single filers are able to fund their Roth IRAs with 100% of the contribution limits if their income is below $117,000. Their amount of contribution availability drops if they are above the $116,000 and are phased out completely at $132,000. For Married Filing Joint taxpayers, income restraints begin at $184,000 and end at $194,000.
Looking forward for 2017 contributions, contribution limits for this year have stayed the same as 2016. This includes the limits for the Roth and Traditional IRAs and the majority of employer sponsored plans such as 401ks and 403bs. A very good practice is to contribute enough of your salary to receive at least the employer match. Also, pay raises often present an easy opportunity to increase your deferral, while reducing your adjusted gross income.
The contribution limits for retirement plans are listed in the following chart, most are unchanged from 2016:
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Our continuous management service monitors your income and determines every year how much you should be contributing to each of these investment accounts. It also reviews your income tax and estate picture, which may provide opportunities for tax savings. If you are interested in this service, please contact us.
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