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It’s Not Too Late For 2008 Retirement Plans

Just because 2008 is over you can still impact your 2008 tax situation with retirement plan contributions. Check out the tidbits below you may not be aware of. They could be helpful to you or to someone you love.  

• You can make 2008 IRA contributions until the April 2009 due date of your 2008 tax return. Extending your tax return due date does NOT extend the time you have to contribute to your IRA. Just make sure you tell your retirement plan trustee to apply the contribution to the correct year. And check your confirmation statements carefully. If the trustee applies your contribution to 2009, let them know right away to fix it.
• You can make your contribution after you file your tax return. But if you report the contribution on your return and then fail to make it in time, you'll have to file an amended return to correct your tax records.
• The IRA contribution limit was raised to $5,000 this year for someone under 50-years-old and $6,000 if you are over 50.
• Even if you are enrolled in a retirement plan at work - like a 401(k) - you can still contribute to a Roth IRA on your own. This is a great way to sock away some more retirement money if you can. You can't contribute to a regular IRA under this condition.
• If you make "too much money" you can't contribute to an IRA.

Be sure to discuss your tax situation with your CPA before making any moves. And give us a call if you have any questions on how you can maximize your retirement plan contributions for 2008.