Saturday, September 23, 2006

Time to Plan for 2006 IRA Contributions

While the deadline is April 16, 2007, it’s not too soon to start setting aside money for your 2006 IRA contributions. As I wrote in a previous post, IRAs are one way to use “other people’s money” to save.

For 2006, the maximum IRA contribution is $4000 per person with a $1000 catch-up contribution for people 50 or older.

Regular IRA contributions are 100% deductible for incomes up to $50,000 (single) and $75,000 (married filing jointly). People with incomes over $60,000(single) and $85,000 (married filing jointly) cannot deduct regular IRA contributions. Roth IRA contributions are not deductible and the maximum contribution can be made for incomes up to $95,000 (single) and $150,000 (married filing jointly). People with incomes over $110,000 (single) and $160,000 (married filing jointly) cannot make Roth IRA contributions.

This is not financial advice. Please consult a professional advisor.

Copyright © 2006 Achievement Catalyst, LLC

No comments: