If you haven’t already contributed to an IRA (Individual Retirement Account), there’s still time to do so. Many people don’t know that the 2018 contribution deadline is actually the 15th of April. However, if you do decide to contribute, you must designate the year you are contributing for. Your tax preparer should be able to help you fill out the necessary forms.
For 2018, the maximum amount you can contribute is $5500 or $6500 if you’re over the age of 50. This applies to both traditional and Roth IRAs. If you’re unsure whether to contribute or not, remember:
- Contributions to traditional IRAs are often tax-deductible. While distributions from IRAs are taxed as income, your tax-rate after retirement could possibly be lower than it is now, lessening the
- Contributions to a Roth IRA, on the other hand, are made with after-tax However, the advantage of a Roth IRA is that withdrawals are usually tax-free.
- Whichever type you use, IRAs provide a great, tax-advantaged way to save for
If you have yet to set up an IRA for 2018, you can still do that. The deadline to establish an IRA is April 15th as well. In other words, if you want to take advantage of the benefits an IRA has to offer, there’s still time to do so, either by contributing to an existing account or by establishing a new one.
If you have any questions about IRAs—whether it’s the right decision for you, how your IRA should be managed, or anything else—please give us a call at 301-294-7500. We would be happy to speak with you.