• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Use tax refund to feather your nest egg

by on
in Small Business Tax,Small Business Tax Deduction Strategies

If you’re short on cash to fund an IRA contribution this year, Uncle Sam may effectively lend you the money.

Strategy: Use your federal income tax refund to fund an IRA contribution. Simply file your 2013 return as early as you can, claiming the amount you intend to contribute. When you receive the refund, deposit the stated amount in your IRA by no later than April 15, 2014.

The IRS approved this taxpayer-friendly technique years ago. (IRS Revenue Ruling 84-18)  

The IRA contribution limit for the 2013 tax year is $5,500 ($6,500 if you’re age 50 or older). If you actively participate in an employer retirement plan, the deduction phases out for a modified adjusted gross income (MAGI) between $59,000 and $69,000 for single filers; $95,000 and $115,000 for joint filers. If your spouse is the active participant, the phaseout range is between $178,000 and $188,000 of MAGI.

Tip: The IRA contribution limit for 2014 remains at $5,500 ($6,500 if age 50 or older).

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/37699/use-tax-refund-to-feather-your-nest-egg "

Leave a Comment