1) DELAY OR PREPAY YOUR TAXES
Traditional IRAs allow you to defer paying taxes on contributions up to $6,000 of retirement savings, or $7,000 if you are age 50 or older. Upon withdrawal, regular income tax is due on your savings and the interest, as it has never been taxed. Roth IRA contributions are made with after-tax dollars and withdrawals from Roth IRA accounts that are at least five years old, including the earnings, are tax-free. Investing in both types of retirement accounts can add tax diversification and flexibility to your portfolio.
For contribution limits on other Qualified accounts like 403b, 457 plans, Individual 401K's, etc., just give us a call at (480) 878-7444, we would love to help.

2) CONTRIBUTION DEADLINE
You have until the date you file your taxes to make IRA deposits. If you make a contribution to an IRA between January 1 and the annual tax deadline, you should tell your Investment Advisor which year the contribution is for. You can file a tax return claiming a traditional IRA deduction before the deposit is actually made, but the contribution should exactly match the actual contribution and be in the account by the due date of annual contributions deadline for that year (tax deadlines vary slightly from year-to-year, consult with your tax professional for detailed dates and deadlines.)
 
3) YOU CAN ROLLOVER YOUR 401(k) PLAN TO A PERSONAL IRA
In fact, a high percentage of IRA money in accounts today were rolled over from what are called "orphaned" 401(k) accounts. These are qualified plans that you either don't move when you leave a company, or simply, didn't know what to do with it, so there it sits. More than 10 times as many dollars are added to IRAs through rollovers than through direct contributions.* As mentioned above, retirement savers can contribute up to $6,000 or ($7,000 if over 50) annually to an IRA, but there is no limit on the amount that can be rolled over to an IRA from your 401(k) or other retirement account after a job change or upon retirement. The average rollover amount was $74,785 in 2008, compared with an average individual contribution of $3,666. Be careful of taking possession of IRA funds, changes in the IRS guidelines only allow individuals to do an indirect rollover 1 time per year. If you were to do more than one, the later moved account would lose it's IRA status and you would be taxed on the entire amount. Always work with an Investment Advisor and have them do a "direct rollover" or "company-to-company" transfer to ensure it keeps it's IRA tax status properly. There is no limit on the amount of direct rollovers an individual can make in one year. Keep in mind, there is no benefit to leaving an old 401(k) at an old company, as the investment choices are usually not as wide and generally, the fees and loads within the plan are higher. Because fees can have a dramatic effect on the overall growth of your investment, it is always a good idea to speak with your Investment Advisor about your options.
*SOURCE: Employee Benefit Research Institute/2008 - https://www.ebri.org/pdf/briefspdf/EBRI_IB_05-13.No386.IRAs.pdf
 
4) ROTH OPTION INCREASING IN POPULARITY
The $100,000 income limit for converting a traditional IRA to a Roth IRA was eliminated in 2010. Since then, there has been a surge in Roth IRA conversions. Retirement savers must pay income tax on the amount converted from a traditional IRA to a Roth IRA, but withdrawals will be tax-free in retirement. "You are paying up-front to remove the uncertainty of what future tax rates will do to your savings." Do you think taxes will be higher or lower in 10 years? 20 years? Talk with Rise Financial Group to get a personalized Roth IRA conversion report on part, or all of your IRA/401(k) balance.