Although the ball has dropped in Times Square, there is one 2014 tax planning option you still have an opportunity to do:
Until April 15th, 2015, you can make a 2014 IRA contribution. What this means is that you can make a contribution to a traditional IRA by that date; or you can make a contribution to a Roth IRA by that date.
It’s worth noting the differences between a traditional IRA and a Roth IRA.
Traditional IRA - you get an income tax deduction upon contribution; the earnings grow tax-deferred; then withdrawals are taxed as ordinary income.
Roth IRA - you do not get an income tax deduction upon contribution; the earnings grow tax-free; then withdrawals are generally tax-free. So, a Roth can be better for a taxpayer with a small income because the deduction on contribution with a traditional IRA would be worth little or nothing.
What the Attorneys of Morris Hall Can Do For You:
The attorneys at Morris Hall have 100’s of years of combined experience ensuring that families’ assets are protected from probate, unnecessary taxes, creditors, ex-spouses and Medicaid spend-down. The attorneys also help those in Arizona and New Mexico to apply for and receive Medicaid assistance and Veterans Benefits. Our Arizona offices are located in Phoenix, Mesa, Scottsdale, Cave Creek, Tucson, Prescott, Flagstaff and Arrowhead. Our New Mexico offices are located in Albuquerque, Las Cruces and Santa Fe. Contact us today at 888.222.1328 to schedule an appointment!
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice, please contact an attorney in your community who can assess the specifics of your situation.