End of Year IRA Planning

As the end of the year approaches, and we start thinking about tax season, you should schedule some time to review your past and upcoming financial, estate and asset protection goals.  One area to review, or initiate, is retirement planning with individual retirement arrangements (IRA).  It may be wise to consult with your tax preparer or CPA, financial advisor or estate planning attorney before making any changes.

For 2014 and 2015, your total contributions to all of your traditional and Roth IRAs cannot be more than:

  • $5,500 ($6,500  if you’re age 50 or older), or
  • your taxable compensation for the year, if your compensation was less than this dollar limit.

Your traditional IRA contributions may be tax-deductible.  The deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels.  You can make 2014 contributions until April 15, 2015.  Also, you can’t make regular contributions to a traditional IRA in the year you reach 70 1/2 and older.  However, you can still contribute to a Roth IRA and make rollover contributions to a Roth or traditional IRA regardless of your age.