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There's still time to contribute to your IRA for 2012

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Michelle Blog PhotoDid you know that IRA contributions for a specific tax year can be made until your tax return deadline for that year? So this year, you may apply IRA contributions (up to the 2012 limit) by April 15, 2013 to the 2012 tax year. This can be done in Traditional or Roth IRA accounts.

Be aware you cannot apply automatic contributions to a prior tax year. You will need to write a check for any contributions made in 2013 that you wish to apply to 2012. For 2012, individuals may contribute a maximum of $5,000, or $6,000 if age 50 or older.

For 2013, the maximum combined amount you may contribute to all of your Traditional and Roth IRAs is $5,500 if you are under age 50 and $6,500 if you are age 50 or older. However, contributions can never exceed your earned compensation for the year (if your earned compensation is less than the applicable limit, you may only contribute up to the amount of your compensation). You may also contribute on behalf of a spouse who doesn’t have earned income.

Wisconsin public school employees, their children, parents, and parents-in-law may participate in the IRA program offered by WEA Trust Member Benefits. We also accept rollovers from a variety of retirement plans. Remember to ask about fees when looking into any IRA program. Our WEAC IRA program is a great option because we do not charge commissions, and our low annual administrative fee is lower than the fees charged by many other providers. For more information, call us at 1-800-279-4030.

Michelle Slawny, CFP®
Worksite Benefit Consultant