Time Is Running Out for 2009 IRA Contributions
Posted by admin in Retirement
If you are putting money into an IRA and want to be able to deduct the maximum amount for 2009, then time is just about out to make that contribution, says Michael Rubin at About.com. As you probably know, IRA contributions can be made up until tax day and still be tax deductible.
If you have not yet made the IRA contribution limits, then there is still a brief window of time still open to ensure that you get a larger deduction on this year's taxes. All contributions up to the limit are deductible and it can mean you will owe fewer taxes on your 1040 income tax.
IRA contributions are only deductible in some situations, according to the IRS. With both a traditional IRA and a Roth IRA, contributions can be made in either one of up to $5,000 if you are less than 50 years old. If you are older than 50, however, then you may contribute as much as $6,000 in both.
The one thing you cannot do is to claim a deduction on your contributions to a Roth IRA. These cannot be claimed at all.
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