There is just one day left until the April 15 tax deadline! We wanted to remind you that, if you haven’t done so already, you still have time to make a 2009 IRA contribution. The contribution limits are as follows:
- Traditional or Roth IRA: $5,000 if you are under age 50, and $6,000 if you are age 50 or older.
- SEP IRA: 25% of your self-employment income. We would strongly recommend that you speak with your accountant before making this contribution.
- SIMPLE IRA: $11,500 if you are under age 50, and $14,000 if you are age 50 or older.
For our clients, if you need to send in a check for your 2009 contribution, feel free to give us a call and we would be happy to let you know who to make the check payable to. If you are self-employed, keep in mind that you can set up a SEP IRA or Solo 401(k) plan as late as April 15th. Should you need help setting one up, please let us know.
Finally, you have probably heard talk about the possibility of converting your Traditional IRA into a Roth IRA during 2010. We wanted to let you know that after April 15th, we will be analyzing your accounts to determine whether this makes sense for you. Due to the fact that everyone’s tax situation is different, there is no blanket answer that we can provide as to when converting a Traditional IRA makes sense. As always, thank you for your trust and please let us know if we can be of any assistance to you.
The Wealth Management Associates Team