Tax season is in full swing, and if you’re like many investors, you’re probably looking for a way to manage your tax bill. One way to do this is to make sure you’ve contributed the full amount to your retirement accounts.
Provided by Todd Pouliot AIF®
It’s not too late to fund your retirement account for 2019. Didn’t save quite enough money by the end of 2019? That’s okay. You can fund your retirement accounts for the previous year all the way up until the annual personal tax filing deadline of April 15, 2020. Just make sure that the custodian who takes care of your retirement account is aware that the contribution you are making is for the previous year. In fact, you might want to actually talk to someone there to make sure your contribution is credited for that year.1
Here’s another consideration: you may continue to contribute to a Traditional IRA past age 70½, under the SECURE Act, as long as you have earned income.
Remember, once you reach age 72, you must begin taking required minimum distributions from a Traditional Individual Retirement Account in most circumstances. Withdrawals from Traditional IRAs are taxed as ordinary income, and if taken before age 59½, may be subject to a 10-percent federal income tax penalty.2
You can contribute to your retirement accounts for 2019 until April 15, 2020. Let’s get together and talk about how we can continue to build your retirement strategy.
1 - irs.gov/retirement-plans/ira-year-end-reminders [01/28/20]
2 - irs.gov/retirement-plans/traditional-and-roth-iras [01/28/20]
This material was prepared by MarketingPro, Inc. for use by Todd J. Pouliot, AIF.