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See IRS Publication 590 for more information on calculating ROTH IRA contribution amounts.
Traditional IRA – Even the traditional IRA is better with higher income limits and new penalty waivers. The Traditional IRA allows you to contribute up to $5,500 for tax year 2013 and tax year 2014. If you are over 50, you can deposit an additional $1,000 as a catch up contribution. The contribution deadline is your income tax return filing due date, not including extensions.
See IRS Publication 590 for more information on calculating Traditional IRA deductions.
So stop by or call us at 419-582-2681 for all the details about how you can stretch your retirement savings with IRAs.
IRAs offered through Osgood State Bank are FDIC insured up to $250,000.
A Health Savings Account (HSA) is an account that you can put money into to save for future medical expenses. There are certain advantages to putting money into a Health Savings Account, including favorable tax treatment.
Contributions to your HSA can be made by you, your employer or both. However, total contributions are limited annually. If you make contributions, you can deduct the contributions (even if you do not itemize deductions when completing your federal income tax return.)
In order to participate in an HSA, you must meet the following criteria:
Other advantages to the HSA include: security, affordability, flexibility, savings, control, portability, ownership and most importantly, tax savings. An HSA provides you with triple tax savings through:
You can use the money in your account to pay for any qualified medical expenses permitted under federal tax law. This includes most medical care and services including dental and vision care.
Our competitive interest rates and no fee accounts have been a great solution for those individuals who qualify.
Congress created the Coverdell Education Savings Account (CESA) to help families save for their children’s education expenses. CESA contributions are not tax deductible, but earnings are tax deferred and distributions for qualified education expenses are tax free. CESA accounts allow families to save for any postsecondary education by investing up to $2,000.00 a year per child, as long as the child is under age 18.
Anyone considering a CESA for a child should check IRS publication 970, Tax Benefits for Education, or consult with a financial planner or a tax or legal professional to determine the best program for a child’s education needs.
As the following chart shows, the Modified Adjusted Gross Income (MAGI) ranges determine full, partial and no contribution categories for an individual based on whether he/she files a joint federal income tax return.
Qualified expenses include tuition, fees, books, elementary and secondary school expenses, computer technology or equipment--even online access--that the beneficiary uses while in school, and equipment required for enrollment or attendance at nearly any postsecondary educational institution. Certain room and board expenses may also qualify.
All balances must be distributed within 30 days of the child reaching age 30; otherwise the parent may have to pay taxes on any earnings, plus an additional 10% penalty.
A Simplified Employee Pension (SEP) plan is a retirement plan created especially for self-employed individuals and employees of small businesses. If you are self-employed, you can establish your own SEP and make tax-deductible contributions to it. If you work for a small business, your employer may establish a SEP and make contributions to it on your behalf. The account grows tax-deferred until you withdraw the money at retirement. The money that you or your employer contribute to the SEP IRA is vested immediately, meaning it’s yours to keep no matter what your length of employment. Contributions of up to 25% of your pay can be made (up to a maximum of $51,000 for 2013 and $52,000 for 2014).
If your employer offers a SIMPLE Retirement Plan, your contributions can be made to a SIMPLE IRA at Osgood State Bank. With a SIMPLE IRA, you make pre-tax contributions to your account, reducing your taxable income. The account grows tax-deferred until you withdraw the money at retirement. If you are eligible, your employer will also make a contribution into your account. The money that you and your employer contribute to the SIMPLE IRA is vested immediately, meaning it’s yours to keep no matter what your length of employment. The SIMPLE IRA allows you to contribute up to $12,000 in tax years 2013 and 2014. If you are over 50, you can deposit an additional $2,500 as a catch up contribution. A SIMPLE IRA is a great way to save for a financially secure retirement.
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