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IRA Contribution Deadline for 2013 is April 15, 2014

Did you know that the deadline for 2013 contributions to your Credit Union IRA is actually in 2014?

The IRS allows you to contribute to the previous year up until the normal federal tax deadline, which is April 15 this year.

For 2013, you can contribute up to $5,500 ($6,500 if you’re age 50 or older), or the amount of your taxable compensation for the year if it is less than the maximum contribution allowed.

If you make contributions after January 1, 2014, but before the April 15 deadline, you need to designate the contribution year that you intend to target. For most tax filers, this can be calculated using the worksheets in either IRS Form 1040 or Form 1040a.

Benefits of IRAs

The Credit Union offers IRAs in two forms: Traditional and Roth. A Traditional IRA is tax-deferred. You don't pay taxes on the money you put into a Traditional IRA. Instead, you pay taxes on your withdrawals. If you'll have less income after you retire, a Traditional IRA can save you money on your tax bill.

You fund a Roth IRA with post-tax assets. You invest in a Roth IRA with your post-tax salary. Then, you don't have to pay taxes on the withdrawal. Roth IRAs make the most sense for people who expect to draw a significant post-retirement income. If you expect to have a significant pension or plan to start a profitable small business when you retire, a Roth IRA might be best for you.

Consult your tax adviser to determine which IRA plan is best for you.

To learn more, or to open a Credit Union IRA, stop by your local branch or give us a call at 510-251-6000 or toll-free 800-782-8782.