IRA savings and deductions
If you have cash, and access to your IRA custodian, you can still deposit money into your account today.
In addition to increasing your retirement savings, you can lower your taxes for 2019.
“If you qualify, you can get a deduction of up to $ 6,000 – or $ 7,000 if you’re 50 or older,” said Neal Stern, CPA and a member of the National Commission on Financial Education CPA of the American Institute of CPA. “You don’t have to itemize to get it.”
The amount you can deduct is based on two criteria: your modified adjusted gross income for that fiscal year and your access to a retirement plan at work.
Single taxpayers who have a plan at work are eligible for a full deduction if they have a 2019 MAGI of $ 64,000 or less ($ 103,000 if married and filing a joint return).
The tax exemption begins to phase out beyond that point, and single taxpayers get no deduction if their MAGI is $ 74,000 and above ($ 123,000 for married and filing jointly).
Taxpayers without a retirement plan at work can take a full deduction regardless of their MAGI if they are singles, heads of household, or qualified widowers.
The same is true if you are married and your spouse is also not covered by a workplace retirement plan.
The deduction limits begin to take effect if a taxpayer’s spouse has a plan at work.
Last chance to save on health
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People with high deductible health insurance plans can also take the next few hours to contribute to a health savings account for fiscal year 2019.
HSAs have three key tax benefits: You contribute to them before taxes or tax deductibles, and your savings will grow tax-free. Use tax-free income to cover qualified medical expenses.
For 2019, you can contribute up to $ 3,500 if you have coverage just for you. That number jumps to $ 7,000 for family plans.
Save an additional $ 1,000 for your HSA if you are 55 or older.
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