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Not Too Late to Max Out Your 2012 IRA

If you haven’t yet contributed to your Individual Retirement Account (IRA) or contributed less than the maximum in 2012, it’s not too late.  You may contribute to either a traditional or Roth IRA until the tax filing deadline of April 15 for your 2012 return or later if you filed an extension.

Traditional and Roth IRAs are the two major types of IRAs.  Simplified Employee Pension Plan (SEP) IRAs are available for self-employed people and owners of small businesses.

An IRA can provide a tax-advantaged way to save for retirement.  For the 2012 tax year, you can contribute up to $5,000 (or up to $6,000 if you’re age 50 or older) to a traditional IRA, a Roth IRA or both.

The amount you may deduct on a traditional IRA may be limited if you and your spouse are both covered by a retirement plan at work and your income exceeds certain levels.  If neither you nor your spouse has a retirement plan at work, your deduction is allowed in full.  Contributions to a Roth IRA aren’t deductible on your 2012 tax return but earnings accumulate tax-free and you won’t pay taxes when you make a qualified withdrawal later.

Allen & Furr can set up these tax deferred accounts using a wide variety of investments including the most well-known mutual fund families. Each person’s choices are based on his or her risk tolerance, objectives and time frame until retirement.  It is always best not to make singular product decisions until a complete analysis of all investment assets and family needs have been thoroughly discussed with a qualified advisor with a macro view of wealth management.

For more information on retirement planning and other financial services, visit Allen & Furr or phone .