If you haven't already made your contribution for the year 2004 or established your IRA for the year 2004 plan on doing it soon. If you are eligible for an IRA it is a very smart thing to do.

Speak to your tax advisor or accountant as soon as possible about this. Don't waste any time. The window of opportunity only stays open until April 15th.

 

Good reminder! Thanks!

 

May I add the possibility to make a "catch up contribution" to your 401 if you are over the age of fifty.

That is also a good thing.

 

Yes, that is a very good thing. Any time you can put money away, and defer the taxes you are better off.

Again, check with your tax advisor or accountant for eligibility. The earlier you see them, the more time you and they will have for planning. It is already well into tax season, but there is still time.

 

I was supposed to contribute to the Irish Republican Army?

:thin ker:: thinker:

Gerry

 

 

Not exactly what I had in mind.

 

Speaking of taxes (not to hijack this thread):

[QUOTE]March 6, 2005, 6:48PM

Avoid 'Dirty Dozen'
Annual IRS list of tax schemes has new members
By KATHLEEN LYNN
The Record

If you've heard that paying taxes is voluntary, or that you can avoid taxes by hiding your money offshore, the IRS begs to differ. With six weeks till the April 15 filing deadline, the Internal Revenue Service is warning taxpayers against overly creative efforts to avoid taxation.

The IRS last week released its annual list of the "Dirty Dozen" tax-related scams.

"Tax scams can take many forms," IRS Commissioner Mark Everson said. "Don't be fooled by false promises peddled by scam artists. They'll take your money and leave you with a hefty tax bill."


The Dirty Dozen:

 

Actually I do have a question about IRAs. Can a retired person still contribute to his/her IRA? At what point does one no longer qualify to contribute to an IRA account? Thanks.

 

In order to contribute to an IRA a person must have earned income. That is wages, self employment income or alimony. If there is one salary in a household the spouse can "piggyback" on it. For example a spouse earning $10,000 can deemed to be $5,000 earned by wife and $5,000 earned by husband.

The contribution can be up to $3,000 plus an additional $500 catchup for those 50 and over. It is limited by the amount of earned income if the earned income is less.

Contributions to a conventional IRA can only be made up to the age of 70. There is no age limit on a Roth.