If you're working on your 2016 Taxes, there is still time to contribute to your IRA (not including extensions). For most taxpayers, the contribution deadline is April 18, 2017. As long as your total contributions don't exceed the annual limit, you can contribute to a traditional IRA, Roth IRA or both.
The 2016 income phaseout ranges for determining deductibility of traditional IRA contributions are:
|Covered by an employer-sponsored plan and filing as:||Your IRA deduction is reduced if your MAGI* is:||Your IRA deduction is eliminated if your MAGI is:|
|Single/Head of household||$61,000-$71,000||$71,000+|
|Married filing jointly||$98,000-$118,000||$118,000+|
|Married filing separately||$0-$10,000||$10,000+|
|Not covered by an employer-sponsored retirement plan, but filing joint return with a spouse who is covered by a plan||$184,000-$194,000||$194,000+|
*Modified Adjusted Gross Income
Managing your tax liability with IRA contributions is a great way to owe less and prioritize your retirement savings.
If you're planning on working with a financial advisor to help with your retirement strategies, review the financial planning checklist to get started.