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Tuesday, December 2, 2014

2014 Year End Retirement Tip! A Must Read


Take care to meet these retirement account deadlines.

Reminder: You only have a few weeks left to accomplishe your 4019k) contribution that will get you a tax deduction on your 2014 return. The deadline is also rapidly approaching for retirees to take required minimum distributions from their retirement accounts.
Take a look at these retirement planning moves you need to take before the year ends.

Make last-minute 401(k) contributions. Workers age 49 and younger can contribute up to $17,500 to their 401(k) plan in 2014. Income tax won’t be due on the amount deposited in a traditional 401(k) account until the money is withdrawn.

Extra time for IRA contributions. While 401(k) contributions typically need to be made by the end of the calendar year, you have until April 15, 2015, to make IRA contributions that count toward tax year 2014.

Take your required minimum distributions. Distributions from traditional 401(k)s and IRAs are required after age 70½, and income tax will be due on each withdrawal.

Get the saver’s credit. Workers who earn up to $30,000 for individuals, $45,000 for heads of household or $60,000 for married couples in 2014 and save in a 401(k) or IRA are eligible for an additional tax perk, the saver’s credit.

Reset your contributions for 2015. In tax year 2015, the 401(k) contribution limit will increase by $500 to $18,000, and the catch-up contribution limit will also grow by $500 to $6,000.

Read the original article here:
http://money.usnews.com/money/retirement/articles/2014/11/17/dont-forget-these-year-end-retirement-planning-tips