There’s Still Time to Contribute to an IRA for 2016

There’s still time to make a regular IRA contribution for 2016! You have until your tax return due date (not including extensions) to contribute up to $5,500 for 2016 ($6,500 if you were age 50 by December 31, 2016). For most taxpayers, the contribution deadline for 2016 is April 18, 2017. You can contribute to a traditional IRA, a Roth IRA, or both, as long as your total contributions don’t exceed the annual limit (or, if less, 100% of your earned income). You may also be able to contribute to an IRA for your spouse for 2016, even if your…

IRA and Retirement Plan Limits for 2017

IRA contribution limits The maximum amount you can contribute to a traditional IRA or Roth IRA in 2017 is $5,500 (or 100% of your earned income, if less), unchanged from 2016. The maximum catch-up contribution for those age 50 or older remains at $1,000. (You can contribute to both a traditional and Roth IRA in 2017, but your total contributions can’t exceed these annual limits.) Traditional IRA deduction limits for 2017 The income limits for determining the deductibility of traditional IRA contributions in 2017 have increased. If your filing status is single or head of household, you can fully deduct…

Capital Gains Taxes Explained

Capital gains taxes can be a confusing topic. Short-term gains and losses versus long-term gains and losses. What rate are they taxed at? Can you net gains against losses? Short-term capital gains/losses –  Investments held for one year or less. Short-term capital gains get the worst tax treatment of the two. They are taxed at your ordinary income tax rate ranging from 10% to 39.6% depending on your total taxable income. Long-term capital gains/losses – Investments held over one year. Long-term capital gains get a more beneficial tax treatment. If your ordinary tax rate is at 15% or less, you may qualify for the 0% long-term capital gains…