News
Opinion
Sports
Business
Community
entertainment
Schools
News
Announcements
Classifieds
Place Ad
Advertising
Contact Us
Archives
Search

Doyle gives IRA tax, retirement tips


April 15 has long been considered a date to avoid.

Wouldnít it be nice if you could do something to lower your federal income tax burden instead of mailing a big check on April 15? With a traditional Individual Retirement Account, you may be able to do just that.

A contribution of the 2010 maximum of $5,000 by April 18 could reduce your taxable income, making your federal tax burden less for the year. If you were 50 or older by the end of 2010, you can add a $1,000 catch-up contribution to potentially reduce the tax burden even more. If you already have a traditional IRA, plan to make a contribution by the April 15 deadline. If not, talk to a financial professional as soon as possible to start one.

There are restrictions governing who may deduct contributions to a traditional IRA. If you donít qualify for a traditional IRA deduction, consider a Roth IRA. You wonít get the federal tax deduction now, but qualified withdrawals can be made free of federal income tax during your retirement years.


Either way, having a plan for retirement is important. You owe it to yourself to make the best plan as soon as possible.



Cindy Doyle is a State Farm agent in West Knox County.

 

News | Opinion | Sports | Business | Community | Schools | Obituaries | Announcements
Classifieds | Place Ad | Advertising | Contact Us | Archives | Search

© 2004-2014 farragutpress