It’s tax time–don’t lose sight of your financial planning goals. It’s not too late to make your IRA contribution for 2014. You can make 2014 IRA contributions until April 15, 2015. Be sure you are taking full advantage of the opportunity to save for retirement.
For 2014 and 2015, total contributions to IRAs cannot be more than $5,500, or $6,500 if you are age 50 or older. The IRA contribution limit does not apply to Rollover contributions.
Traditional IRA contributions may be tax deductible. The deduction may be limited if you or your spouse are covered by a retirement plan at work and your income exceeds certain levels. If you file a joint return, you may be able to contribute to an IRA even if you did not have taxable compensation as long as your spouse did. You can contribute to an IRA whether or not you participate in a retirement plan at work. However, you might not be able to deduct all of your contributions based on your situation.
Roth IRA contribution may be limited based on your filing status and income, and Roth IRA contributions are not tax deductible. Why contribute to a Roth IRA? Savings can grow in this tax-advantaged way.
You cannot make regular contributions to a traditional IRA in the year you reach 70 ½ and older, BUT you can still contribute to a Roth IRA and make rollover contributions to a Roth or traditional IRA regardless of your age.
As always, it is best to seek the advice of a professional Tax Advisor who is familiar with your unique situation.