Individuals have until April 15th 2008 to make contributions to an IRA account and be able to deduct it from their 2007 tax return. The IRA contributions deduction has a limit of $4,000, for the 2007 tax year, for filers under the age of 50 (given your earned income was over $4,000). The limit increases to $5,000 for individuals over the age of 50. These contributions will reduce your taxable income and there for reduce your tax bill. In some cases they might actually make you fall into a lower tax bracket and save you even more.
If you haven’t started contributing to an IRA consider doing so. The short term tax relief is only one small benefit. The real benefit comes when you retire. It is a known fact that most American’s do not have enough funds in their retirement accounts. Please do not fall victim to that statistic and invest today.
For more finance related blogs please visit Cola Tax & Solutions
Subscribe to:
Post Comments (Atom)
2 comments:
This is too good, I feel that you should write another blog for the same.
Hey thank you for putting me across such an important piece of information.
Post a Comment