As a reminder, taxpayers have until the filing deadline for their 2013 tax return (generally, April 15) to make an IRA contribution for last year. An IRA contribution may be a wise move not only as a tax-reduction strategy (see Deductibility Requirements, below) but, also to better prepare yourself for your eventual retirement.
If you do not yet have an IRA, you also have until April 15 to open your IRA to receive your 2013 contribution.
How Much Can I Contribute?
You may contribute up to $5,500 to your IRA for 2013. If you were at least age 50 by December 31, 2013, you may contribute an additional $1,000 as a catch-up contribution. You must have eligible compensation for the year of at least the amount of your IRA contribution.
If you make a contribution to a Traditional IRA, you may be able to take a tax deduction up to the amount of your contribution. If neither you nor your spouse are eligible to participate in an employer-sponsored retirement plan, your contribution is always deductible.
If you or your spouse are eligible to participate in an employer-sponsored plan, the deductibility of your contribution may be limited as follows:
|For:||Your contribution will be fully deductible if your Modified Adjusted Gross Income (MAGI) is less than:||Your tax deduction will be gradually phased out if your MAGI is between:|
|Single Taxpayers||$59,000||$59,000 – $69,000|
|Married, filing jointly (where both spouses are eligible to participate in an employer plan)||$95,000||$95,000 – $115,000|
|Married, filing jointly (where only one spouse is eligible to participate in an employer plan)||$178,000||$178,000 – $188,000|
|Married, filing separately||$0 – $10,000|