An Important 2015 Tax TIP from Northwest

Contributions to Individual Retirement Accounts (IRAs)

When Can Contributions Be Made?

Contributions can be made to your traditional IRA for each year that you receive compensation and have not reached age 70 ½. For any year in which you do not work, contributions cannot be made to your IRA unless you receive alimony, nontaxable combat pay, military differential pay, or file a joint return with a spouse who has compensation. Even if contributions cannot be made for the current year, the amounts contributed for years in which you did qualify can remain in your IRA. Contributions can resume for any years that you qualify. Contributions must be made by the due date. Contributions can be made to your traditional IRA for a year at any time during the year or by the due date for filing your return for that year, not including extensions. For most people, this means that contributions for 2015 must be made by April 18, 2016. [1]

The contribution limits for Traditional and Roth IRAs for 2015 is $5,500. The age 50 catch up is fixed at $1,000. Income limits do apply to Roth IRA contributions. For further information on contributions to Roth and Traditional IRA’s please visit the IRS Retirement Plan page detailing differences between traditional and Roth IRAs at https://www.irs.gov/Retirement-Plans/Traditional-and-Roth-IRAs.

As a reminder if you would like for Northwest Investment Counselors to help you with your 2015 IRA Contribution please keep this important information and time frame in mind. If you will be using funds from existing accounts with Northwest to make your contribution, we ask that you provide us with a weeks notice prior to the deadline.

If you have any questions please contact your Wealth Manager.

[1] Department of Treasury, Internal Revenue Service Publication 590-A 2015 Returns