You can check out our IRA tips from an interview we did with Yahoo Finance.
A quick recap: the contribution limits for 2018 are $5,500 if you were under age 50 and $6,500 if you were 50 or over by 2018 year-end.
You have until April 15, 2019 to submit your contribution.
Here’s 3 hints from a pro:
You can fund an IRA even if you contributed to your 401(k) at work. The best type of IRA (Traditional or Roth), and whether or not you can deduct it, will depend on your income and tax bracket, so ask your tax preparer or financial advisor.
Making a non-deductible contribution? It doesn’t need to go into a separate account (that’s a misunderstanding of the tax rules). But make sure you do report it when filing your taxes so you don’t get taxed twice on the same non-deductible dollars.
If you are eligible to fund a Roth IRA, make sure you do so. If you need the funds at a later date, you can always withdraw your contributions without fee or penalty. But if those funds stay in the Roth account, they’ll be forever free of tax. What’s not to like about that?
Clients: be sure to contact us with your questions!