You have until Wednesday, April 15, 2020, to contribute for the 2019 tax year.
The deadline for filing your 2019 tax return is April 15th. But did you know you also have until then to open an IRA for the 2019 tax year? By contributing to an IRA, you can plan for a more comfortable retirement, and you may be able to reduce your tax burden today.
Consider these two prime benefits: you garner potential tax savings from your contribution, and you can use the savings as a supplement to your retirement nest egg. Experts say you’ll need 70 to 80 percent of your pre-retirement income to maintain your current lifestyle. So, saving now makes good sense.
For 2019, your total contributions to a traditional and Roth IRAs can be up to:
- $6,000 ($7,000 if you’re age 50 or older), or your taxable compensation for the year, if your compensation was less than this dollar limit.
A Roth IRA and 529 Education Plan offer distinct benefits from a traditional IRA.
- Roth IRAs offer dividends that grow tax-free, and a 529 Plan is a prepaid tuition strategy with the potential of much higher contribution limits.
If you need help navigating your IRA choices, we can help outline the benefits of each. We also recommend that you contact your tax advisor to see how an IRA can improve your tax situation or retirement planning. Then see us for your IRA!
The tax deadline is approaching.
Call or text us at 616.532.9067 or stop in today and learn more about the benefits of opening an IRA. We can help you get started – in time for the 2019 tax season.