Daily Dupaco

Tuesday, March 29, 2016

It's not too late to save in 2015

Even though last year is a memory, there’s still time to make good on some 2015 money matters.

Contributions to certain savings accounts can count for the 2015 tax year until the tax filing deadline, which is April 18, 2016.

If you are eligible, you still have time to make contributions to these accounts:

  1. IRA: Qualified individuals can make contributions to a Traditional or Roth IRA for 2015 until the tax filing deadline. Eligible individuals could receive a deduction for Traditional contributions or a tax credit for Roth contributions, according to Lynn Schmitt, lead IRA specialist at Dupaco Community Credit Union. Contributions are limited to $5,500, but a “catch-up” provision allows individuals age 50 or older to make additional contributions of $1,000 each tax year.
  2. Health Savings Account: If you were eligible for a Health Savings Account in 2015, you can make 2015 contributions until the tax filing deadline, Schmitt said. A Health Savings Account is a U.S.-government-sponsored individual investment account that individuals can establish to make tax-deductible contributions, earn tax-free dividends on contributions and withdraw money tax-free for qualified medical expenses.
  3. 529 college savings plan: Many 529 college savings plans offer tax advantages. With College Savings Iowa, for instance, contributions can reduce Iowa taxable income up to a maximum amount that’s adjusted annually for inflation. Iowa taxpayers can treat contributions made to their accounts through the state’s income tax filing deadline as having been made the prior year. 

* Consult a tax advisor to determine your personal eligibility and/or limits.

By Emily Kittle

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