Saving for Retirement?
Thursday, March 31, 2022 – IRA contributions for 2021 can be made until April 18.
Contributions for 2021 can be made to a traditional or Roth IRA until the filing due date, April 18, 2022, but must be designated for 2021 to the financial institution.
Generally, eligible taxpayers can contribute up to $6,000 to an IRA for 2021. For those 50 years of age or older at the end of 2021, the limit is increased to $7,000. Qualified contributions to one or more traditional IRAs may be deductible up to the contribution limit or 100% of the taxpayer’s compensation, whichever is less. There is no longer a maximum age for making IRA contributions.
While contributions to a Roth IRA are not tax deductible, qualified distributions are tax-free. Roth IRA contributions may be limited based on filing status and income. Contributions can also be made to a traditional and/or Roth IRA even if participating in an employer-sponsored retirement plan (including a SEP or SIMPLE IRA-based plan). More information, and answers to frequently asked questions, can be found here.
Have more questions about saving for retirement? Give us a call.