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MAR
31
There's Still Time to Lower Your 2014 Taxes

By now, most of us have filed and forgotten about our 2014 tax returns. However, if you are one of the millions of Americans who is planning to file over these next two weeks, then there is still time to either bolster your return or lower the payment you will be making to Uncle Sam.

The IRS allows individuals to make a prior-year contribution (in this case, 2014) to a traditional IRA, ROTH IRA, or both, prior to your tax return due date, not including extensions. For most of us, that is April 15th, which makes this an ideal time to give final consideration to saving a little bit of extra money for retirement.

Your qualifications for this opportunity depend largely on your employment status, filing status and income. The deductibility phases out, as your income rises. For a Traditional IRA, a married couple filing jointly can make some level of deductible contribution if you modified adjusted gross income (MAGI) is below $116,000, for those covered by an employer-sponsored plan, or $191,000 for those not covered by an employer sponsored plan. That contribution can be up to $5,500 for those under 50 years old, and up to $6,500 for those over 50.

While you can still make a non-deductible contribution if you don't fit into the limits, you may be better off making a ROTH IRA contribution. You can contribute to a Roth IRA if your MAGI is within certain dollar limits (even if you're 70½ or older). For 2014, filing as single or head of household allows you to make a full Roth contribution if your income is $114,000 or less. Your maximum contribution is phased out if your income is between $114,000 and $129,000, and you can't contribute at all if your income is $129,000 or more. Similarly, if you're married and file a joint federal tax return, you can make a full Roth contribution if your income is $181,000 or less. Your contribution is phased out if your income is between $181,000 and $191,000, and you can't contribute at all if your income is $191,000 or more.

Some of you might be thinking "Wait, I already filed my taxes, but can I still take advantage of this?" The answer is YES. You can make the contribution and then ask your accountant or tax preparer to file an amended return in order to reflect the changes.

Remember, you do not need to make the full contribution. Even a $1,000 contribution will make an impact on your tax return, and more significantly, continue the important task of building a retirement portfolio that allows you to live the life you wish, with financial security and independence.



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 Securities offered through American Portfolios Financial Services, Inc. Member FINRA/SIPC (FINRA/SIPC). American Portfolios Financial Services, Inc. and American Portfolios Advisors, Inc. are not affiliated with any other named business entities mentioned.

This communication is strictly intended for individuals residing in the state(s) of CA, CO, CT, FL, IL, KY, MA, MD, NJ, NY, PA and VA. No offers may be made or accepted from any resident outside the specific states referenced.
 


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