Written by: Angela Keeley-White
Have you made your 2017 Roth IRA (or traditional IRA) contribution?
If you have not yet made the maximum contribution, and are eligible to make contributions, you still have time!
Tax payers have until April 17 th of 2018 to make their Roth IRA and traditional IRA contributions for the 2017 tax year. If you are within the income limitations to make contributions, a Roth IRA is an excellent investment account as investment growth is tax deferred and withdrawals in retirement can be tax free.
For 2017, single filers are able to fund their Roth IRAs with 100% of the contribution limits if their income is below $118,000. Their amount of contribution availability drops if they are above the $118,000 and are phased out completely at $133,000. For Married Filing Joint taxpayers, income restraints begin at $186,000 and end at $196,000.
Looking forward for 2018 contributions, contribution limits for this year have increased for 401(k), 403(b), most 457 plans, and SEP plans. Contribution limits have stayed the same for SIMPLE, Traditional, and Roth IRA’s. A very good practice is to contribute enough of your salary to receive at least the employer match. Also, pay raises often present an easy opportunity to increase your deferral, while reducing your adjusted gross income.
Related: What Investment Decision Process Should You Implement?
The contribution limits for retirement plans are listed below:
Our continuous service monitors your income and determines every year how much you should be contributing to each of these investment accounts. It also reviews your income tax and estate picture , which may provide opportunities for tax savings. If you are interested in this service, please contact us .