Individual retirement accounts (IRAs) are a great way to save for your future so you can live comfortably after you retire. With tax season ending soon, we wanted to share a few IRA tips and inform you of your contribution limits for your IRA.
You Can Still Make an IRA Contribution for Last Year
If you're still working, it's not too late to make a contribution to your IRA and have it count for the 2016 tax year! This kind of contribution, often referred to as a carryback contribution, allows you to add money to the balance of your IRA until the tax filing deadline and designate it as a contribution from 2016. The 2017 deadline to make a carryback contribution to your traditional or Roth IRA is April 18, 2017. This allows you to take full advantage of the opportunity to save for retirement.
IRA Contribution Limits
For 2016 and 2017, your total contributions to all your traditional and Roth IRAs cannot be more than $5,500 ($6,500 if you’re age 50 or older). If your taxable compensation was less than that amount, your contributions cannot exceed your compensation amount.
Keep Your Beneficiaries Up-to-Date
We would also like to remind you to check your beneficiary designation for your IRA. Significant life changes such as marriages, divorces or death of family members may change who you want to benefit from your IRA. Review your beneficiaries yearly as a best practice.
Consolidate Your Retirement Accounts
Finally, we encourage you to simplify your finances when it comes to your old employer retirement plans by consolidating them. This will give you one centralized location for your IRA funds, making it much easier to manage.
Talk to an Expert
We employ IRA Specialists that can help you make the right decision for your financial future. Give us a call or stop into one of our locations today to see how we can help you successfully plan so that you can live the lifestyle you want without outliving your money in retirement. Or, click below to fill out a short form and one of our experts will reach out to you.
Lincoln Savings Bank, Member FDIC
