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Dianne Williams Wildt, MBA
Certified Retirement Counselor®
Since 1983 in the financial services and investment industry
Retirement Pathways, Inc.
4500 Bowling Blvd., Suite 100
Louisville, KY 40207
Phone: 502-797-1258
Email: dianne@retirementpathways.com
Website: www.retirementpathways.com
If you’re still looking for a tax deduction on your 2019 tax return, you might find one by contributing to a traditional IRA. This action has a double benefit because you’ll put money away for your future, too. Here’s a look at the traditional IRA, to which you can make tax-deferred contributions for tax year 2019 up to your tax-filing deadline if you qualify by income.
Tax-deductible contributions help you later, because your account should grow over time, and now, because contributions may be deductible from your taxable income in the tax year contributions are made. So, if you are in the 25% combined tax bracket (state and federal), this means a $5,000 annual contribution saves you $1,250 in taxes.
If you file jointly or are a qualified widower, the income limit for a full deduction is $103,000 or less. For a partial deduction, it’s between $103,000 and $123,000. Married taxpayers filing jointly have no income limits to qualify for tax-deductible contributions when neither has a workplace retirement plan. If your spouse has a workplace plan and you don’t, take a full deduction if your MAGI is $193,000 or less and a partial deduction between $193,000 and $203,000.
* Distributions from traditional IRAs and, if taken prior to reaching age 59 1/2, may be subject to an additional 10% IRS tax penalty.
https://www.irs.gov/retirement-plans/2019-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-covered-by-a-retirement-plan-at-work and https://www.irs.gov/retirement-plans/2019-ira-deduction-limits-effect-of-modified-agi-on-deduction-if-you-are-not-covered-by-a-retirement-plan-at-work
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Investment advisory services offered through American Capital Management, Inc., a State Registered Investment Advisor. Retirement Pathways, Inc. is independent of American Capital Management, Inc.
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