Individual Retirement Accounts (IRAs) allow people to save for retirement with contribution limits and rules to keep in mind at the end of the year. The maximum IRA contribution is $5,500 or $6,500 for those over 50, and both spouses can contribute even if only one has income. Exceeding the contribution limit will incur a 6% tax, but withdrawals of excess amounts can avoid this. Those over 701⁄2 must take required minimum distributions from traditional IRAs. Contributing to an IRA may qualify for the Saver's Credit which increases tax refunds or reduces taxes owed.

1. TOP FOUR YEAR-END
IRA REMINDERS
It’s never too late to save for retirement. Individual
Retirement Accounts are a great way to put away
money for your golden years. If you have an IRA
or want to open one, here are some year-end
rules and reminders to keep in mind:

2. Limits on
maximum
contribution
The maximum
contribution to a
traditional or Roth IRA is
$5,500 ($6,500 for those
50 or older). If you file a
joint return, both
spouses can contribute
to an IRA even if only
one of you has taxable
compensation.

3. Avoid excess
contributions
If you exceed your
contribution IRA limits,
you will be taxed at 6%
for the excess amount
over the 2015 IRA
contribution limit.
However, you can
withdraw the amount in
excess of the limit from
your account to avoid
the tax.

4. Take a
Required
Distribution
If you’re at least age
70½, you must take
a required minimum
distribution, or RMD,
from your traditional
IRA. You are not
required to take a RMD
from your Roth IRA.

5. Claim the
Saver’s Credit
The formal name of the
Saver’s Credit is
the Retirement Savings
Contributions Credit.
You may qualify for this
credit if you contribute to
an IRA or retirement
plan. The Saver’s Credit
can increase your refund
or reduce the tax you
owe.

6. To Learn More
Visit
www.taxassistancegroup.org
Or Call
(855) 549-7829