No, the title isn’t a typo! Most taxpayers and retirement savers don’t realize that they can still contribute to their retirement accounts after the new year arrives. For many different retirement savings plans, you still have a small window of time to contribute towards last year’s savings!
2018 Tax Contribution Opportunities
- Traditional IRAs: The maximum traditional IRA contribution was $5,500 (or $6,500 for taxpayers over 50 after 12/31/18) for 2018. Until April 15, 2019, you can still contribute towards your 2018 total amount.
- Roth IRAs: For 2018, the contribution limits for Roth IRAs are the same as those for traditional IRAs, and you can also make a contribution to your account that counts toward 2018 until April 15, 2019. Remember that the limit for IRAs and Roth IRAs is a combined limit of $5,500 or $6,500 for taxpayers over 50.
- Spousal Contributions: A nonworking spouse can open and contribute to either type of IRA based on the working spouse’s income, and both spouses will be held to the same contribution limit. The combined contributions cannot exceed the working spouse’s income, and all contributions need to be made before April 15, 2019.
- Simplified Employee Pension IRAs: These tax-deferred plans allow for a maximum contribution of the lesser of $55,000 or 25% of the employee’s compensation. These contributions can be made up to the tax return due date including extensions. You could potentially contribute until October 15, 2019 as a result!
- Health Savings Accounts: These accounts are only for those with high-deductible health plans, which means $1,350 or more for individual coverage or $2,700 for family coverage. The maximum contributions for 2018 were $3,450 for individuals and $6,900 for families. You can make a contribution through April 15, 2019.
Stay on Track with Miles Tax Advisory
Tax time is here, which means now is the time to gather up your paperwork and start the filing process. If you have any questions on contributing to your retirement accounts and how it will affect your taxes, we are always here to assist you!