Add to Your IRA by April 15th
April 02, 2014
Did you know that you still have until April 15th of this year to put money away for 2013 in your Roth or Traditional IRA? You can put $5,500 into your account for 2013 and $6,500 if you are over the age of 50. Make sure you see if you qualify and if so take advantage of the Roth or Traditonal IRA. You don't want to miss out on being able to contribute to your retirement.
The income limit for last year to contribute to a Roth IRA is $112,000 for a single person and $178,000 for a married couple filing a joint retur. So, if you make more than those amounts you cannot add to your Roth IRA.
The other thing to consider is setting up a Roth IRA for your child. As long as someone has earned income and is within the income limits, you can add to the Roth IRA for the child. if your child makes $2,000 in the summer, you can put $2,000 in. If they make $6,000, you are limited to the $5,500 contribution limit. Remember the Roth IRA can be taken out tax free for their first home purchase, higher education or they can leave it in the Roth IRA for their own retirement.
The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 1/2 may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of the Roth IRA. Their tax treatment may also change. Please seek advice from your tax professional regarding your specific tax situation.