It’s Time to Fund Your Retirement

Retirement Funding

Have you fully funded your retirement accounts for 2016?

The amount you can invest is capped each year by the IRS, with no availability to fund missed years. To take full advantage of the tax deferral available to you, you should maximize your contributions each year when possible.

GOOD NEWS

From January 1st to April 17, 2017, you are still able to make Traditional IRA and Roth IRA contributions for tax year 2016.  If it is an option, you may also go ahead and fund for the tax year 2017. This will allow you to fully maximize your tax deferral.

IRA & ROTH IRA contributions are limited to $5,500 (or $6,500 if you’re over 50). IRA contributions may also be tax deductible if your modified adjusted gross income is under $71,000 for individuals or $118,000 for joint filers.

OVER AGE 70?

One of the biggest IRS penalties is failing to withdraw your required minimum distribution (RMD) from your IRA. Though you have until December 31st to withdraw your RMD, the best time to do it is between January 1st (you can’t determine the amount until then) and April 17th (your withdrawals will be included in your taxable income except for any part that was taxed before).

For those who are charitably inclined, the “qualified charitable distribution” tax rule just became permanent. It allows traditional IRA owners over age 70.5 to donate up to $100,000 of their required minimum distributions to qualified charitable organization.

We’re always here to help. All funding decisions should be discussed with your advisor. Please contact our office with any questions regarding how to fund your retirement accounts.

 

CONTACT US ABOUT FUNDING

 

Raymond James Financial Services Inc. and its advisors do not provide advice on tax issues, these matters should be discussed with a tax professional. C16-058907