As I have mentioned several times before you should be meeting with and/or at minimum teleconferencing both your accountant and financial advisor prior to the end of each calendar year to strategize about your retirement to make sure that; 1) you are in the right retirement plan and 2) that you have fully funded it – primarily based upon your individual specifics, i.e. workplace retirement plan and AGI/MAGI (Adjusted Gross Income and Modified Gross Income) limits (to be explained later), etc.
The figures below are the amounts you can contribute, in total, across all of your Roth and traditional IRAs, including those you hold at other companies.
If you’re under age 50 – $5,500
If you’re age 50 or older – $6,500
Contribution Facts:
• You can never contribute more than you’ve earned for the year.
• Contributing to a Roth IRA – If you have a Roth IRA, your modified adjusted gross income (MAGI) for the year may affect whether you can contribute the maximum amount, or—if your income›s high enough—exclude you from contributing to a Roth IRA altogether.
• Contributing for a spouse – While you can contribute to an IRA for a spouse who isn’t working (as long as you file a joint tax return), the total contribution for both you and your spouse can’t exceed your joint taxable income or double the annual IRA limit, whichever is less.
• Contributing as a minor – Minors who want to start contributing to an IRA must abide by limits based on their income, not that of their parents. IRA contribution deadline.
• The deadline for making IRA contributions for a given tax year is typically April 15 of the following year.
For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $184,000 and $194,000, up from $183,000 and $193,000.
The AGI phase-out range for taxpayers making contributions to a Roth IRA is $184,000 to $194,000 for married couples filing jointly, up from $183,000 to $193,000. For singles and heads of household, the income phase-out range is $117,000 to $132,000, up from $116,000 to $131,000.
The AGI limit for the saver’s credit (also known as the retirement savings contribution credit) for low- and moderate-income workers is $61,500 for married couples filing jointly, up from $61,000; $46,125 for heads of household, up from $45,750; and $30,750 for married individuals filing separately and for singles, up from $30,500.
I will cover SEP and Simple IRA’s in next month’s issue of Money Matters.
Please be aware that all figures in this article are for informational purposes only and should be cross-checked with both your accountant and financial advisor.  I have always found it most beneficial to have an active business relationship with my client’s accountant as when it comes to your retirement plan if the old adage applies, i.e. that two sets of eyes are better than one!
For more information, please call Douglas J. Sedam at 1-866-549-3900, 661-295-2400 #1 or email: Doug.Sedam@ThePaseoGroup.com.  You may also learn more at www.ThePaseoGroup.com.
Securities and Investment Advisory Services offered through Financial West Group which is a member FINRA/SIPC. OSJ Office: 19510 Ventura Boulevard #211 Tarzana CA 91356 818-996-3375 The Paseo Financial Group, Inc. and Financial West Group are unaffiliated companies.