IRAs continue to be one of the powerful ways to accumulate funds for a financially secure retirement. Even though the calendar year has ended most tax deductions for your 2016 taxes, there are still a few ways to maximize the value of your IRA.
Make A Contribution
Although contribution limits for 2017 remain the same as they were for 2016, individuals with earned income (wages) are eligible to contribute up to $5,500 annually (or $6,500 if age 50 or over) as long as you contribute by the tax return filing deadline of April 18th.
Make Contributions Early
The earlier in the tax year that you contribute, the sooner your money begins earning on a tax-deferred basis. By making your contribution early, you put the power of compounding to work, and over time, this can add up to greater savings. Put your money to work sooner by making your contribution now.
Take Advantage of the Catch-Ups
If you are age 50 or over, the IRA rules allow you to contribute an extra $1,000 per year as a “catch-up” contribution. Go ahead and supercharge your retirement savings.
See our IRA Annual Limits chart for more information on contributing to a Traditional, Roth, SEP or SIMPLE IRA.