IRA Contributions
If you contribute to an IRA, the contributions may be fully or partially deductible. Although deductions are generally not available to high-earning taxpayers if either spouse participates in an employer’s retirement plan, contributions may still grow on a tax-deferred basis until withdrawn.
The contribution limit for the 2008 tax year increased from $4,000 to $5,000. Plus, if you’re age 50 or older, you can add a “catch-up contribution” of $1,000. The contribution deadline for 2008 is April 15, 2009, but you may earn more by contributing earlier.
Finally, a word about the new economic stimulus payments the IRS had been distributing: These rebates aren’t available until you’ve filed your 2007 return, so taxpayers with extensions have to wait. Certain individuals who normally aren’t required to file returns - such as those receiving social security benefits - may follow a simplified filing procedure.
Just remember it is almost never too late to start saving for your retirement
Filed under: Finance, Financial Planning, Personal Finance, Taxes
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