Tax season ends a week from today – plenty of time to fund an IRA!

April 8th, 2009 by Joe Kristan

The traditional IRA is an often-overlooked last-minute tax saving device. Yes, there are limits to IRA deductibility, but it can be a no-brainer in some circumstances. You should be thinking IRA if:
- You don’t have a pension plan at work.
- You have a spouse at home who doesn’t participate in a pension plan.
- You are a dependent with wage or self-employment income.
- You participate in a plan, but your 2008 income isn’t above the limits in the table below.
2009-408-3.JPG
Source: IRS
If you qualify, you have until April 15 to start an IRA and make a deductible contribution. The limits are the lesser of your “earned income” (wage or self-employment income) or $5000 ($6,000 if you are 50 or over by the end of 2008).
Keep stopping by for new filing season tips through April 15!

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