If you’re like many investors, you’re probably looking for a way to manage your tax bill. One approach to consider is contributing the full amount to your retirement accounts.
It’s not too late to fund your retirement account for 2020. You can fund your retirement accounts for the previous year up until the annual personal tax filing deadline of April 15, 2021. Just make sure that the custodian who takes care of your retirement account is aware that the contribution you are making is for the previous year.1
Here’s another consideration: you may continue to contribute to a Traditional IRA after age 72, under the SECURE Act, as long as you have earned income.
Once you reach age 72, you must begin taking required minimum distributions from a Traditional Individual Retirement Account (IRA) in most circumstances. Withdrawals from Traditional IRAs are taxed as ordinary income, and if taken before age 59½, may be subject to a 10-percent early withdrawal tax unless an exception applies.2
You can contribute to your retirement accounts for 2020 until April 15, 2021. Let’s get together and talk about how we can continue to build your retirement strategy.
Contact me with questions or concerns.
Robert J. Tuzzo, CLU®, ChFC®, MSFS
Total Financial Concepts, Inc.
106 Apple Street Suite 204
Tinton Falls, NJ 07724
Phone: 732-225-7404
Citations:
- Efile.com, November 27, 2020
- IRS.gov, October 13, 2020.
Disclosure: This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific situation with a qualified tax professional.
Compliance Note: A1RB-0125-Jan22t