by Stacy Francis, CFP®, CDFA
One of my clients called me up today. “I didn’t think I had enough money to make the maximum contribution to my IRA for 2008,” she told me, “but now it turns out I am getting quite a substantial tax rebate. Is there any way I could use this money to maximize my 2008 contribution?”
It’s a great question, and even better – the answer is yes! Fantastic news for all of you who have IRA accounts already (as long as you opened them prior to New Year’s)! The cut-off date for 2008 contributions is not until April 15, so as long as you file your taxes early and get your money in time, you can most definitely use it to add to your nest egg. In fact, it is an excellent move!
Just as a reminder, here are the 2008 contribution and income limits for IRAs.
Individuals aged 49 and under: $5,000
Individuals aged 50 and over: $6,000
Single filers need to make less than $101,000 per year for a full Roth IRA contribution, $116,000 for a partial.
Married couples need to have a combined income of less than $159,000 for a full Roth IRA contribution, $169,000 for a partial.
Anyone despite their income can contribute to a traditional IRA, even Donald Trump!