CTC tips — prior year IRA contributions

April 15 taxes

The deadline to file your taxes is April 15th – just a week from today! Did you know that April 15th is also the deadline to make a prior year IRA contribution for 2012?

The most a person can contribute to his or her IRA for 2012 is $5,000 — $6,000 for people 50 years or older. If you haven’t maxed out your contribution for 2012 yet, you have another week to make a prior year contribution. And remember: contributions to a Traditional IRA will lower your Adjusted Gross Income which can help you qualify for more credits and deductions, and perhaps even avoid a higher tax bracket.

For 2013, the maximum IRA contribution is $5,500 for people under 50 years of age and $6,500 for those 50 or older. The deadline for making 2013 contributions is April 15th, 2014.

If you have any questions about IRAs and/or prior year contributions, feel free to leave a message below or contact us privately. Also, consult your IRA provider and a tax professional to see how a prior year contribution can affect your retirement and tax plans.

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