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  • Writer's pictureASCEND Tax & Accounting

There is still time to make an IRA Contribution!

It is not too late!

Do you want your money to grow, tax-deferred? Would you like to receive a tax deduction for 2016? Yes, this article is referring to 2016! There is still time to make an IRA Contribution! The deadline for 2016 IRA Contributions is April 18, 2017. The benefit of a Traditional IRA contribution is your money grows tax-deferred and you may receive a tax deduction. In the case of a Roth contribution, your money grows tax-free.

The 2016 contribution limit is $5,500 ($6,500 if you were age 50 or older on December 31, 2016).

Deductible Traditional IRA: A full deduction is allowed if the individual (and spouse) are not covered by an employer retirement plan. If there is an employer retirement plan, the deduction is phased out based on income.

Roth IRA: The contribution is not deductible. However, qualified distributions are tax-free, this tax-free benefit includes the income earned in the IRA!

Nondeductible Traditional IRA: If your income is too high and you are limited in contributions to a Traditional or Roth IRA, you may benefit from a nondeductible traditional IRA contribution. The benefit of this type of IRA is the tax-deferred benefit of the IRA account. Currently, there is the option of converting the IRA to a Roth where the growth is tax-free.

Contact us at 520-477-7971 to discuss the tax deferred and tax deduction benefits you may receive.

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