This time of year it’s easy to be preoccupied with budgeting your holiday spending, rather than thinking about long-term savings. And that’s OK! But there is one important point you should know. While retirement contributions for the “current” tax year (2016) can be taken up to April 15, 2007, you need to have an account open BEFORE the end of the 2016 calendar year if you intend to make the contributions. So, if the intent is there, but the account is not, you do need to take action soon.
Financial planning and tax regulations can be tricky and time consuming if you aren’t an expert. If you know you want to make a retirement plan contribution for 2016 but don’t know where to start, you can call us at (913) 888-9100 and we can walk you through the tax side of things. We would also be happy to introduce you to financial advisors we know and trust to get accounts open in time.
While we’re on the subject, we get lots of questions about retirement accounts and deductions. Often, we’re asked about Roth IRAs. It’s worth noting that Roth IRA contributions don’t give you a tax deduction, but there is no tax due on earnings and contributions on withdrawals. We know this can all be a bit confusing, so bring your questions to us. It’s important you understand how these investments and related tax items work.
