For Immediate Release
Contact: Gigi Thompson Jarvis
There’s Still Time to Fund a 2012 IRA
Contributions Made through April 15, 2013, Can Be Deductible for 2012
WASHINGTON, DC (April 2, 2013) Wishing you’d done more to reduce your tax burden in 2012? Even now, it may not be too late!
“Many people don’t realize that there’s still time to fund a Traditional IRA for 2012,” explained John Sheeley, EA, an enrolled agent in Goshen, NY. “A contribution between now and April 15 may help to lower your tax burden for 2012 by allowing you a full or partial deduction. But keep in mind that even if you file an extension of the return, your IRA investment needs to be completed no later than April 15 in order to count with IRS, so there’s no time to spare.”
If you are under 50, you may contribute a maximum of $5,000 to a Traditional or Roth IRA (Roth contributions are not tax deductible); those 50 or over may contribute up to $6,000. But in order to qualify for the tax deduction, you have to meet certain criteria established by the IRS and taxpayers without a (401) k plan at work fare the best.
To claim the full deduction, you must not currently be eligible for a tax-deferred retirement plan, or you must have an adjusted gross income (AGI) of $58,000 or less for singles, or $92,000 or less for married couples filing jointly. If you are married filing jointly and your spouse is eligible for a company retirement plan but you are not, your contribution is fully deductible as long as your combined AGI does not exceed $173,000.
Partial deductions are available for single filers with an AGI of $58,000 to $68,000 and for married couples filing jointly with an AGI of $92,000 to $112,000. If you are married and your spouse is eligible for a company retirement plan but you are not, your contribution is partially deductible if your combined AGI is $173,000 to $183,000.
If you meet the criteria but don’t need the additional deduction for 2012 and are expecting to owe more in taxes this year, consider opening an IRA for 2013.
“Tax planning can really make a difference in your annual tax bill,” said Sheeley, “and taking advantage of every legally available tax deduction and credit is your right as a taxpayer.”
To ensure that you take advantage of all available tax free savings, tax credits and deductions for 2012, or to start planning for tax year 2013, consult with a licensed tax professional, such as an enrolled agent (EA).
About Enrolled Agents
Enrolled agents (EAs) are America’s tax experts. They are the only federally-licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS. While attorneys and certified public accountants are also licensed, only enrolled agents specialize exclusively in taxes. Enrolled agents are required to complete many hours of continuing education each year to ensure they are up-to-date on the constantly changing tax code and must abide by a code of ethics. To locate an enrolled agent in your area, go to the “Find an Enrolled Agent” directory at www.naea.org.